Weekly Report 17/05 -21/ 05 / 2010
The sharp drop occurred on Fridayconfirmed thecompletion ofthe internal 4th wave of our suggested Elliott cycle over short term basis within 3 corrective waves. Now, we see how the positive divergence started to take the metal upwards violently once more, reviving that the bullishness might control the movements during this week to complete the caught IM structure. Potential targets reside at 1265.00, followed by 1288.00. A break of 1249.00 could accelerate this awaited positive scenario.
The trading range for this week is among the key support at 1196.00 and key resistance now at 1288.00.
The general trend over short term basis is to the upside, targeting 1365.00 per ounce as far as areas of 1120.00 remain intact.
Previous ReportSupport1237.001233.001226.001211.001205.00Resistance1249.001255.001265.001275.001288.00RecommendationBased on the charts and explanations above our opinion is, buying gold from 1233.00 targeting 1288.00 and stop loss below 1196.00 might be appropriate