Morning report

Gold has reached the projected technical target of our expected bullish action at 1012.00- check the analysis here-. Based on the same Elliott sequence as seen on the above four-hour chart, we think that the impulsive third wave has been ceiled and now the corrective actions started to form the 4th wave, targeting 970.00 zones and may extend further towards 960.00 areas. A break of 980.00 areas -38.2% Fibonacci of the third wave- will confirm our count. Therefore our outlook will be to the downside over the intraday basis, supported by the negative divergence appearing on RSI 14 indicator and the shooting star pattern as seen on the secondary image.

The trading range for today is among the key support now at 952.00 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 1004.00 targeting 987.00 and stop loss above 1017.00 might be appropriate.