The mixture between the previous discussed three drives pattern and Elliott count for the rally started from 1044.00 to the all-time high of 1249.00 offers three technical factors:
1-Five impulsive waves have been completed earlier around the third drive.
2-The collapse from 1249.00 to 1165.00 could be seen as wave A.
3-The past week correction could be seen as wave B.
Thereby, potential downside movements could be seen during this week to complete the harmonic and Elliott sequence. Areas of 1249.00 should hold to keep this suggested count valid.
The trading range for this week is among the key support at 1165.00 and key resistance now at 1270.00.
The general trend over the short term basis is to the upside, targeting $ 1365.00 per ounce as far as areas of 1120.00 remain intact.
Previous ReportSupport1202.001196.001187.001183.001171.00Resistance1216.001226.001232.001239.001249.00RecommendationBased on the charts and explanations above our opinion is, selling gold from 1215.00 targeting 1165.00 and stop loss above 1250.00 might be appropriate.