Weekly Report 23/08 -27/ 08 / 2010

Gold is still drawing our suggested corrective scenario, where we believe that the third wave could start anytime from the current areas between 61.8% Fibonacci-1224.00- and 76.4% Fibonacci-1239.00 for the IM wave from the historical high 1265.00 to 1156.00. Actually, a daily closing below 1224.00 might assist the metal to start a bearish wave during this week. The secondary image of the daily basis shows negative candlestick formation alongside negative crossover of Stochastic that might support our Elliott count.

The trading range for this week is among the key support at 1192.00 and key resistance now at 1265.00.

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 with a daily closing below 1224.00 targeting 1192.00 and stop loss above 1240.00 might be appropriate.