Morning Report

Yesterday's expected bearishness has been stopped at the pivotal support levels of 1122.00 but actually gold's bullish trend is strong enough to take it towards 161.8% expansion level at 1149.00 and it might extend further towards 1157.00 levels, which represent the extreme technical target for the CD leg of our harmonic AB=CD pattern. Thus; potential bullishness could be seen over intraday basis without ignoring the overbought signs appearing on momentum indicators.

The trading range for today is among the key support at 1117.00 and key resistance now at 1157.00.

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, buying gold from 1134.00 targeting 1155.00 and stop loss below 1117.00 might be appropriate.