Weekly Report (July 19 - 23)
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Gold settled for reaching the 38.2% target for the harmonic patter mentioned last week in our report -click here-. Now we assessing Eliot waves we can see that an IM ended followed by a correction, which is likely to be a ZZ correction which finished A and B waves and signs of C have appeared. Therefore, this week, we expect a downside wave which remains valid as far as trading is below 1219.00 with daily closing. Indicators support our expectations as provided on the chart above. Note that breaching 1183.00 will confirm the continuation of the downside C wave.
The trading range for today is among the key support at 1165.00 and key resistance now at 1253.00.
The general trend over short term basis is to theupside targeting 1365.00 as far as areas of 1120.00 remain intact.
Previous ReportSupport1190.001187.001183.001180.001176.00Resistance1198.001203.001212.001216.001219.00RecommendationBased on the charts and explanations above, our opinion is selling gold around 1203.00 targeting 1180.00 and stop loss above 1291.00 might be appropriate for this week