Gold Technical Precious Metals (2010-07-23)

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Gold heads to the upside and today we preserve our expectations for the same scenario presented yesterday; RSI is still trading positively while MACD is trying to enter positivity. The suggested numbering for Elliot shows that we are in the bullish B wave of the Zigzag ZZ, targeting initially 1209.00; therefore, we believe that gold is to head to the upside today which remains valid as far as trading is intact above 1180.00 with four-hour closing.

The trading range for today is among the key support at 1166.00 and key resistance now at 1220.00.

The general trend over short term basis is to theupside targeting 1365.00 as far as areas of 1120.00 remain intact.

Previous Report

Weekly ReportSupport1192.001184.001180.001177.001174.00Resistance1196.001203.001209.001216.001220.00RecommendationBased on the charts and explanations above, our opinion is buying gold around 1192.00 targeting 1216.00 and stop loss below 1180.00 might be appropriate