Gold Technical Precious Metals (2010-02-18)

Gold has reached the detected technical objective, mentioned in our yesterday's reports at 1098.00 as seen on the provided four-hour chart. Now, the metal is attacking the lower line of the ascending channel that controls the bearish harmonic AB=CD pattern. The door is now open towards the second technical target of 1085.00-61.8% Fibonacci level of CD leg-.Thus; we believe that further bearishness could be witnessed over intraday basis.

The trading range for today is among the key support at 1065.00 and key resistance now at 1137.00.

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

Weekly ReportPreviousReportSupport1098.001095.001092.001087.001085.00Resistance1105.001107.001109.001111.001117.00RecommendationBased on the charts and explanations above our opinion is, selling gold from 1105.00 targeting 1086.00and stop loss above 1119.00 might be appropriate.