Gold Technical Precious Metals (2010-05-21)

Gold slipped violently towards the key support levels of 1165.00 zones and it is now trading around 61.8% Fibonacci levels of the third leg of our captured bearish harmonic three drives pattern. The negative pressure might continue over intraday basis towards the next technical targets of the pattern around 1152.00 and 1144.00. Stochastic and AROON are still giving bearish signs, supporting our outlook.

The trading range for today is among the key support at 1144.00 and key resistance now at 1202.00.

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.

Weekly Report Previous ReportSupport1169.001165.001158.001155.001144.00Resistance1176.001183.001187.001192.001196.00RecommendationBased on the charts and explanations above our opinion is, selling gold from 1176.00 targeting 1152.00 and stop loss above 1196.00 might be appropriate.