Gold declined strongly yesterday, retesting the support at 1226.00; over four-hour basis we can see how gold failed in confirming the breach for the major bullish trend's support, which is likely to push the metal to the upside today before returning to the downside move within the Elliot formation suggested in our previous reports. The suggested downside move in our previous reports remain valid as far as trading is steady below 1265.00 though breaching this level will extend the expected upside move for today.
The trading range for today is among the key support at 1209.00 and key resistance now at 1265.00.
The general trend over short term basis is to theupside targeting 1365.00 as far as areas of 1120.00 remain intact.
Weekly ReportSupport1239.001232.001228.001226.001222.00Resistance1245.001249.001252.001255.001265.00RecommendationBased on the charts and explanations above our opinion is buying gold around 1239.00 targeting 1255.00 and stop loss below 1226.00 might be appropriate.