Gold slipped sharply yesterday, breaching the pivotal support areas of 1226.00-turned into resistance-. The secondary image of the daily chart proves the negative effect of the suggested negative divergence appeared on MACD. Additional bearish movements could be seen over intraday basis, supported by the suggested Elliott count and the negative sign appearing on AROON.
The trading range for today is among the key support at 1192.00 and key resistance now at 1252.00.
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 ReportSupport1216.001211.001209.001202.001198.00Resistance1226.001228.001232.001235.001239.00RecommendationBased on the charts and explanations above our opinion is, selling gold around 1222.00 targeting 1196.00 and stop loss above 1239.00 might be appropriate.