Weekly Report 26/07 -30/ 07 / 2010
Gold is presently facing very sensitive areas after touching the uptrend line, which carried the movements from 680.00 to all-time high of 1265.00. Actually, there are negative technical factors that could assist the metal to breach this aforesaid trend line as follows:
1-The bearish harmonic AB=CD pattern that could take it towards the second technical objective of the pattern at 61.8% of CD leg around 1125.00 zones.
2-The suggested Elliott count as wave A isn't completed yet.
3-The obvious bearish sign of AROON indicator.
4-The negative divergence of OsMA, which still has downside targets to be reached.
Thereby, potential bearish actions could be seen during this week but not before breaching the uptrend line.
The trading range for this week is among the key support at 1135.00 and key resistance now at 1232.00.
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 ReportSupport1187.001183.001174.001165.001155.00Resistance1198.001203.001209.001211.001216.00RecommendationBased on the charts and explanations above our opinion is, selling gold with a breakout below 1183.00 targeting 1145.00 and stop loss above 1211.00 might be appropriate.