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Gold traded in a rather tight range since yesterday, yet trading is still above 1180.00 -38.2% correction for the upside wave that started since February 05, 2010 and ended with the historic high- and accordingly we can suggest the second scenario to describe gold's movement; it suggests that the decline from the top was the A wave from the Zigzag wave, and as we can see that the IM formation was ideal. Therefore, we believe an upside wave might affect gold today within the formation of the bullish B wave targeting 1209.00 and 1230.00 which are the 38.2% and 61.8% correction of the A wave. Our expectations require areas of 1174.00 to remain intact.
The trading range for today is among the key support at 1154.00 and key resistance now at 1216.00.
The general trend over short term basis is to theupside targeting 1365.00 as far as areas of 1120.00 remain intact.Support1184.001180.001177.001174.001169.00Resistance1192.001196.001203.001209.001216.00RecommendationBased on the charts and explanations above, our opinion is buying gold around 1184.00 targeting 1210.00 and stop loss below 1174.00 might be appropriate