Morning Report

Gold notably inclined, supported by two factors; SMA 20 and failure of breaching 1395.00. This incline took it towards 127% of CD leg of the bullish AB=CD pattern-the image at the left side-; meanwhile, it stabilized above the harmonic resistance of the butterfly pattern at 1410.00 where 88.6% of CD leg exists -to the right-. Momentum indicators are showing obvious overbought signs, while a negative divergence seems to be under preparation on RSI. Henceforth, the effect of 127% of AB=CD pattern might force gold to decline below 88.6% of the butter fly pattern.Chances for achieving possible bearishness over intraday basis is still intact,but areas of 1420.00-1430.00 should hold to keep this scenario valid. A break of 1406.00 with a four hour closing will confirm our constructive outlook.

The trading range for today is among the key support at 1362.00 and key resistance now at 1455.00.

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

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Weekly Report

RecommendationBased on the charts and explanations above our opinion is, selling gold with a four hour closing below 1406.00 targeting 1380.00 and stop loss with a four hour closing above 1420.00 might be appropriate.