Weekly Report 03/05 -07/ 05 / 2010
Finally, gold has been capable of touching the awaited Fibonacci level of 76.4% for XA leg as seen on our provided daily chart. Now, our suggested harmonic structure is completed while the negative divergence appearing on Stochastic is still working. Therefore, potential downside actions could be witnessed during this week, targeting 1144.00 zones and might extend towards 1127.00 areas.
The trading range for this week is among the key support at 1027.00 and key resistance now at 1226.00.
The general trend over short term basis is to the downside, targeting 1025.00 per ounce as far as areas between 1225.00 and 1249.00 remain intact.
Previous ReportSupport1172.001166.001155.001144.001132.00Resistance1183.001187.001196.001200.001207.00RecommendationBased on the charts and explanations above our opinion is, selling gold from 1180.00 targeting 1144.00 and stop loss above 1207.00 might be appropriate.