Weekly Report 28/06 -02/ 07 / 2010
Having a look a look at the weekly chart, we will notice that the metal is dominated by an impulsive wave which started at 680.00 zones. Actually, there is an opportunity for reaching the first technical target of the fifth wave at 1323.00 but there is a big technical obstacle that might delay or might prevent gold from visiting these areas. This obstacle is the negative divergence, seen obviously on MACD indicator. Thus; we will not be confirmed that the bullishness might continue unless we witness a stable move above the all-time high of 1265.00. From here our outlook will be neutral until wewitness a breakout above 1265.00 areas and remember my dear reader that we use the weekly chart so thatthe breakout should by accompanied by daily closing at least.
The trading range for this week is among the key support at 1202.00 and key resistance now at 1300.00.
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 ReportSupport1249.001235.001232.001226.001219.00Resistance1260.001265.001274.001285.001300.00RecommendationBased on the charts and explanations above our opinion is, buying gold with a breakout above 1265.00 targeting 1320.00 and stop loss below 1226.00 might be appropriate.