Gold slipped downwards, breaching 61.8% Fibonacci level for the entire bearish rally from 1265.00 to 1156.00, closing below 1224.00-check the weekly report- and our yesterday's captured head and shoulders top pattern was activated via breaching the neckline. Not only that but gold came below SMA 50 as seen on the provided chart and therefore ,we hold onto the bearish speculation of the Elliott count, which is supported by the above discussed negative factors.
The trading range for today is among the key support at 1192.00 and key resistance now at 1245.00.
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 ReportSupport1216.001210.001207.001203.001198.00Resistance1224.001228.001232.001235.001239.00RecommendationBased on the charts and explanations above our opinion is, selling gold around 1222.00 targeting 1198.00 and stop loss above 1240.00 might be appropriate.