Weekly Report 10/05 -14/ 05 / 2010
Gold is presently facing 88.6% Fibonacci level of XA leg, while the AB leg has corrected 50 % earlier. These Fibonacci ratios declare that the harmonic pattern that started at 1226.00-historical high- is seeking for reversal zones as they represent the retracement levels for a BAT pattern. Therefore, possible downside movements could be seen during this week, targeting 1165.00 zones. Areas of 1226.00 should hold to keep this scenario valid; otherwise the metal could reach 1250.00 zones.
The trading range for this week is among the key support at 1155.00 and key resistance now at 1249.00.
The general trend over short term basis is to the downside, targeting 1025.00 per ounce as far as areas of 1249.00 remain intact.
Previous ReportSupport1196.001187.001183.001176.001165.00Resistance1205.001211.001216.001226.001233.00RecommendationBased on the charts and explanations above our opinion is, selling gold from 1205.00 targeting 1165.00 and stop loss above 1126.00 might be appropriate.