Weekly Report 22-26 / 02 / 2010
Since being bottomed out at 1042.00, gold has been capable of constructing an IM wave as seen on the provided four-hour chart. The mixture between the aforesaid Elliott count and harmonic studies shows that a reversal might have been laced already. Thus; potential downside actions could be witnessed during this week, supported by overbought signs appearing on Stochastic and CCI indicators.
The trading range for this week is among the key support at 1060.00 and key resistance now at 1185.00.
The general trend is to the upside as far as 865.00 remains intact with targets at 1249.00.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold with a breakout below 1120.00 targeting 1062.00 and stop loss above 1162.00 might be appropriate.|