Gold Technical Precious Metals (2010-07-27)

Gold is currently attacking the uptrend line which has carried the movements from 680.00 to the all-time high of 1265.00. It is trading around the critical levels of 1184.00 zones-which we discussed its role in details earlier- and we see on the subsidiary image how a negative crossover appeared on Stochastic of daily basis. This bearish overlapping could assist the metal to breach the trend line. A break of which will assure the four negative factors, which discussed in details in our weekly report and we recommend reviewing it. To recap, potential bearishness could be seen over intraday basis.

The trading range for today is among the key support at 1165.00 and key resistance now at 1209.00.

The general trend over short term basis is to the upside, targeting 1365.00 per ounce as far as areas of 1120.00 remain intact.

Weekly Report Previous ReportSupport1176.001174.001172.001165.001158.00Resistance1187.001192.001196.001198.001203.00RecommendationBased on the charts and explanations above our opinion is, Selling gold with a breakout below 1183.00 targeting 1158.00 and stop loss above 1202.00 might be appropriate.