Reconsidering our suggested Elliott count, which we explained in details in the past wee, we can see a completion scenario for the grand second wave as it retraced sharply from 161.8% Fibonacci level of A wave at 1210.00. Actually, this aforesaid level met 50% Fibonacci level of the entire descending rally from all-time high of 1265.00 to 1156.00. Thus; we are not completely sure if the metal has placed the second wave completely or it can touch 1224.00-61.8% Fibonacci of the first wave-. Anyway, the bearishness is in favor during this week as far as tradingremains below 1224.00 zones to form the bigger third wave.
The trading range for this week is among the key support at 1165.00 and key resistance now at 1245.00.
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
Support 1198.00 1192.00 1187.00 1183.00 1176.00
Resistance 1210.00 1216.00 1224.00 1232.00 1235.00
Recommendation Based on the charts and explanations above our opinion is, selling gold with a breakout below 1198.00 targeting 1165.00 and stop loss above 1224.00 might be appropriate.
