Morning Report

Gold declined violently yesterday closing below C point of the bullish harmonic butterfly pattern, but at the same time the candlestick closing was achieved above 88.6% Fibonacci of CD leg. The most important thing is that it did not achieve a four hour closing below 1402.00, which is our risk limit; henceforth, the bullishness might be resumed but we will be neutral until we witness a stable move above C point once again at 1420.00-1425.00 levels to pinpoint the upcoming move. A daily closing below SMA 20 at 1406.00, accompanied by breaching 1402.00 will damage the bullish possibility over intraday basis and may be over short term.

The trading range for today is among the key support at 1388.00 and key resistance now at 1474.00.

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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RecommendationBased on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move.