Gold Morning Technical Report 24/10/2014

The metal dropped yesterday and failed to stabilize above 38.2% correction at 1236.15 showing above. Stability below the referred to level weakens the positivity intraday without failing it. Stability above 1215.75 could bring back the upside move, but trading below Linear Regression Indicator 34 in addition to RSI weakness by trading below line 50, and the curved signal lines of MACD forces us to prefer the sidelines today.

In fact, we will wait for more appropriate Risk/Reward Ratios, whereas the overall outlook still indicates the possibility of reaching 1269.15, but since Risk/Reward Ratios are inappropriate, we prefer to remain neutral today.