Gold Technical Precious Metals (2010-08-03)

The strength of the suggested neckline for the bearish classical pattern has forced gold to show downside actions as the metal came below the pivotal support levels of 1184.00. Thereby, we believe that the re-testing movements were completed and it might move downwards over intraday basis. A break of 1172.00 could open the door for panic sell-off actions, retargeting 1156.00.

The trading range for today is among the key support at 1156.00 and key resistance now at 1216.00.

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 ReportSupport1176.001172.001165.001158.001155.00Resistance1184.001187.001182.001196.001198.00RecommendationBased on the charts and explanations above our opinion is, selling gold around 1184.00 targeting 1163.00 and stop loss above 1198.00 might be appropriate.