Morning Report

Gold moved to the upside affected by the bullish harmonic pattern and settled above the first target at 38.2% correction of CD and above the main harmonic resistance. Since trading is steady above this level, further upside movement is expected for today towards the second target at 61.8% then 76.4% which is the first extended target. Stochastic is overbought and provided negative signals, which might increase the volatility and downside correctional moves.

The trading range for today is among the key support at 1302.00 and key resistance now at 1395.00.

The short term trend is to the downside targeting 1208.00 per ounce as far as areas of 1485.00 remain intact.

RecommendationBased on the charts and explanations above, our opinion is buying gold around 1344.00 targeting 1380.00 and stop loss with four-hour closing below 1322.00 might be appropriate today