Gold Technical Precious Metals (2010-08-02)

Gold is presently facing very critical resistance levels, consisting of a previous broken cluster support at 1184.00 and the previous broken neckline of a suggested bearish classical pattern as seen on the provide daily chart. Thereby; we believe that the inclines that occurred on past Friday could assist it to gather the momentum it needs toreume thepotential downside actions during this week Areas of 1158.00-1156.00 could be re-tested. We can't ignore the bearishness of the weekly basis that we discussed in our previous week's report.

The trading range for this week is among the key support at 1137.00 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 ReportSupport1176.001172.001165.001158.001144.00Resistance1187.001192.001198.001203.001209.00RecommendationBased on the charts and explanations above our opinion is, selling gold around 1187.00 targeting 1158.00 and stop loss above 1209.00 might be appropriate.