Weekly Report 14/06 -18/ 06 / 2010
Having a look at the upside rally that started since the last week of October 2008 at 680.00 zones, we will notice that five waves have dominated theses inclines. Therefore, the suggested Elliott count on the weekly hart offers the probability of starting the corrective (A-B-C) structure and consequently, potential bearishness could be seen during this week. There are two negative signs, supporting our suggestions:
1-Negative divergence on MACD indicator.
2-AROON up-colored in green was capable of penetrating the value of 70.00 to the downside.
The trading range for this week is among the key support at 1165.00 and key resistance now at 1275.00.
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 ReportSupport1226.001216.001209.001202.001187.00Resistance1232.001239.001245.001249.001252.00RecommendationBased on the charts and explanations above our opinion is, selling gold with a breakout below 1226.00 targeting 1183.00 and stop loss above 1153.00 might be appropriate.