Weekly Report 07/05 -11/ 06 / 2010
The mixture studies between the suggested Elliott sequence for the rally from 1044.00 to the all-time high of 1249.00 and the harmonic methods proves that, the collapse from 1249.00 to 1165.00 zones could be seen as wave A while wave B is currently under preparation. Thus; wave C could be activated to complete the cycle. Note that, the bearish effect of the harmonic three drives is still in favor. To recap, potential downside movements could be seen during this week. Assessing intraday direction, bearish harmonic structure has been completed on Stochastic of the four-hour interval. A break of the historical peak will negate these anticipations.
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 ReportSupport1215.001209.001202.001192.001183.00Resistance1226.001232.001239.001249.001255.00RecommendationBased on the charts and explanations above our opinion is, selling gold with a breakout below 1215.00 targeting 1165.00 and stop loss above 1250.00 might be appropriate.