Morning Report

Gold couldn't take the Fibonacci level of 61.8% for the descending rally from 1133.00 to 1084.00, which represent 127% for XA leg of our caught bearish harmonic formation as seen on the provided four-hour chart. Therefore, we still see chances for achieving downside movements over intraday basis, supported by the bearish candlesticks formations and negative signs appearing on the indicators.

The trading range for today is among the key support at 1085.00 and key resistance now at 1132.00.

The general trend over short term basis is to the downside, targeting 1025.00 per ounce as far as areas between 1225.00 and 1249.00 remain intact.

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RecommendationBased on the charts and explanations above our opinion is, selling gold with a breakout below 1107.00 targeting 1185.00 and stop loss above 1122.00 might be appropriate.