Morning Report

Gold declined sharply after touching the initial resistance areas of 1203.00, forming an obvious negative divergence as seen on OsMA indicator. This negative divergence alongside the negative sign appearing on Stochastic argue us to say that, the A wave might have been placed already and the metal is on its way to form B according to our suggested Elliott scenario. Thus; the intraday basis could be bearish, particularly if it breached 1184.00 zones.

The trading range for today is among the key support at 1165.00 and key resistance now at 1220.00.

The general trend over short term basis is to the upside, targeting 1365.00 per ounce as far as areas of 1120.00 remain intact.

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RecommendationBased on the charts and explanations above our opinion is, selling gold around 1194.00 targeting 1173.00 and stop loss above 1211.00 might be appropriate.