Gold Technical Precious Metals (2010-01-18)

Since recording the bottom of 1074.00, gold has formed an ideal Elliott sequence over short term basis as seen on our provided four-hour chart. It is presently forming an internal correction inside the bigger [C] wave. The daily candlestick formation-secondary image supports the expected bearishness during the coming period. Ideal technical target of this [C] wave reside around 1106.00 followed by 1091.00 zones. Note that, a break of 1091.00 will ease the way towards 1074.00 again.

The trading range for this week is among the key support at 1045.00 and key resistance now at 1249.00.

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

Previous day ReportSupport1125.001117.001111.001106.001095.00Resistance1140.001144.001153.001162.001170.00RecommendationBased on the charts and explanations above our opinion is, selling gold from 1140.00 targeting 1095.00 and stop loss above 1163.00 might be appropriate.