Morning Report

Areas of 76.4% Fibonacci from 1162.00 to 1044.00, which met 127% Fibonacci level of BC leg for the bearish harmonic AB=CD pattern has proved its solidity. Gold moved downwards aggressively, respecting our yesterday's explained scenario. It formed a long black candlestick as seen on the provided daily chart, reviving the negative harmonic pressure is to continue and therefore further bearishness could be seen over intraday basis.

The trading range for today is among the key support at 1098.00 and key resistance now at 1144.00.

The general trend is to the upside as far as 865.00 remains intact with targets at 1249.00.

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RecommendationBased on the charts and explanations above our opinion is, selling gold from 1122.00 targeting 1102.00 and stop loss above 1137.00 might be appropriate.