Weekly Report 05/07 -09/ 07 / 2010
Gold slipped aggressively during the past week, testing the pivotal support levels around 1196.00. There are four negative technical factors that could be seen on the weekly chart encouraging us to say that further bearishness could be witnessed during this week:
1-The suggested Elliott count as it might start the corrective structure A-B-C.
2-The bearish harmonic AB=CD pattern.
3-The hanging man candlestick pattern which confirmed by the past week's long black candlestick.
4-The negative divergence which appeared on MACD.
The trading range for this week is among the key support at 1165.00 and key resistance now at 1265.00.
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 ReportSupport1202.001196.001183.001176.001165.00Resistance1216.001219.001226.001235.001249.00RecommendationBased on the charts and explanations above our opinion is, selling gold around 1218.00 targeting 1183.00 and stop loss above 1240.00 might be appropriate.