Gold Technical Precious Metals (2012-02-13)

Weekly Report

The metal breached the ascending main support level shown above in pink, but 23.6% Fibonacci correction of the upside move, which started at the bottom of 1522.00 and ended at the top of 1763.00, was able to stop the bearishness. Gold returned to trade again within critical levels, where trading below (C) point of the double harmonic stature and also below 88.6% Fibonacci correction of the CD leg at 1735.00 suggests retesting the support level shown in green, supported by stability below the ascending main support. But at the same time, the metal failed to settle below 1706.00. Therefore, we remain neutral now, awaiting the metal to confirm the breach of 1706.00 with 4-hour closing below it.

The trading range for this week is among the key support at 1640.00 and key resistance now at 1794.00.

The short-term trend is to the upside with steady weekly closing above 1475.00 targeting 1945.00.

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