Morning report

Since 8th of July, gold has built a short term Elliott sequence that started at 904.00 zones as seen on the above four-hour chart. Based on this cycle we think the metal is on the way to form the 4th internal wave of the grand third one. Hence a correction towards 973.00-971.00 may occur first before resuming the impulsive upside action towards 1006.00-1012.00 areas. As a result, the intraday trend is to the downside, supported by negative signs appearing on RSI14.

The trading range for today is among the key support now at 942.00 and key resistance now at 1035.

The general trend is to the upside as far as 820.00 remains intact with targets at 1035.00 and 1060.00.

RecommendationBased on the charts and explanations above our opinion is, selling gold from 994.00 targeting 979.00 and stop loss above 1006.00 might be appropriate.