Weekly Report 04 -08 / 01 / 2010

By observing the weekly chart, we see that it isoffering a potential Elliott count that has began a [IM] wave that started at 415.00 zones and was topped out at 1225.00 zones. Henceforth, we believe that, the metal is on its way to form the bigger [A] wave with target at 1028.00; followed by 1017.00- 38.2% Fibonacci for the upside rally from 680.00 zones to the aforesaid peak-. Thus, the weekly outlook is bearish, as far as areas between 1144.00 and 1160.00 remain intact.

The trading range for week is among the key support at 984.00 and key resistance now at 1225.00.

The general trend is to the upside as far as 865.00 remains intact with targets at 1249.00.

RecommendationBased on the charts and explanations above our opinion is, selling gold from 1115.00 targeting 1028.00 and stop loss above 1160.00 might be appropriate.