Gold Technical Precious Metals (2010-01-22)

Gold succeeded in reaching the second detected technical objective, mentioned in our weekly report as seen on the provided chart. Now, the path is cleared to reach the full correctional level of Fibonacci at 1074.00 zones, which represent the extreme target of our captured C wave for Elliott sequence. The secondary daily chart supports our overview. A mild correction might occur towards 1095.00-1102.00 zones before resuming the bearish rally over intraday basis.

The trading range for today is among the key support at 1035.00 and key resistance now at 1140.00.

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

Weekly Report Previous ReportSupport1088.001080.001074.001066.001058.00Resistance1095.001102.001106.001111.001117.00RecommendationBased on the charts and explanations above our opinion is, selling gold from 1095.00 targeting 1074.00 and stop loss above 1113.00 might be appropriate.