Weekly Report 01 -05 / 02 / 2010

Gold declined sharply during the past week, claiming that the previous explained Elliott count of the weekly chart is in favor for the time being. Thus; we see how five waves has been formed and it is presently seeking for forming wave (A) of the full (A_B_C) construction to complete the cycle. Areas of 1074.00 should be breached to confirm the bearish outlook while the technical targets reside between 1020-1015 zones. Stochastic supports our negative overview for this week.

The trading range for this week is among the key support at 1000.00 and key resistance now at 1160.00.

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

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling gold with a breakout below 1074.00 targeting 1020.00 and stop loss above 1118.00 might be appropriate.