news and gold strategy 22/11/2010

The metal is trading below 1362.00 as we mentioned in our technical messages, confirming the proposed Elliott count, which was published this morning in the weekly report. The four hour chart shows bearish sign on Stochastic, while a potential bearish classical pattern is under preparation. This pattern will be confirmed once a breakout is seen below 1320.00. Thus, we keep our weekly anticipations intact.

The trading range for today is among the key support at 1332.00 and key resistance now at 1395.00.

The general trend over the short term basis is to the downside targeting $1208.00 per ounce as far as areas of1465.00 remain intact.

Weekly Report

Support	1350.00	1345.00	1339.00	1332.00	1320.00
Resistance	1362.00	1365.00	1372.00	1380.00	1385.00

Technical Analysis

When we look at the first graph, we see that the previous explained Elliott sequence is still valid as that the forth wave is still in progress. The second chart shows the IM probability of the entire A wave that if it intended to form a zig zag correction, and thus the fifth wave could start sooner. In result, potential bearishness could be witnessed during this week.

The trading range for this week is among the key support at 1291.00 and key resistance now at 1406.00.

The general trend over the short term basis is to the downside, targeting $ 1208.00 per ounce as far as areas of 1465.00 remain intact.

Support	1358.00	1350.00	1339.00	1330.00	1320.00
Resistance	1362.00	1372.00	1380.00	1385.00	1395.00
Recommendation	Based on the charts and explanations above our opinion is, selling gold around 1362.00 targeting 1291.00.00 and stop loss with a daily closing above 1395.00 might be appropriate

Support	1358.00	1350.00	1339.00	1330.00	1320.00
Resistance	1362.00	1372.00	1380.00	1385.00	1395.00
Recommendation	Based on the charts and explanations above our opinion is, selling gold around 1362.00 targeting 1291.00.00 and stop loss with a daily closing above 1395.00 might be appropriate.