Morning Report

The mixture between the classical and harmonic studies show that a bullish classical pattern is in progress, supporting the construction of CD leg for a harmonic AB=CD pattern. The correctional levels of 61.8% for the rally from the historical high to 1044.00 could be the only obstacle for achieving this scenario. The overbought signs appearing on Stochastic might cause some kind of fluctuation, while a breakout above 1155.00 will support the possible bullishness.

The trading range for today is among the key support at 1122.00 and key resistance now at 1162.00.

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 with a breakout above 1155.00 targeting 1180.00 and stop loss below 1137.00 might be appropriate.