Weekly Report 16/08 -20/ 08 / 2010

It seems that, gold intended to reach 61.8% Fibonacci for the descending rally from the historical high of 1265.00 to the short term bottom at 1156.00. As we discussed before, this declining wave has taken IM structure and thus; we believe that gold might reverse from 1224.00 zones and even if it corrected until 1239.00-76.4% Fibonacci-, the bearishness probably will dominate the movements from one of the above mentioned 2 levels to activate the bigger third wave. Any daily closing above 1239.00 could damage this suggested Elliott count.

The trading range for this week is among the key support at 1183.00 and key resistance now at 1255.00.

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 Report

RecommendationBased on the charts and explanations above our opinion is, selling gold around 1224.00 targeting 1196.00 and stop loss above 1240.00 might be appropriate.