After placing a low at 916.00 yesterday the price moved violently towards the initial resistance areas of 940.00 but started to decline slightly showing that it doesnâ€™t have enough momentum to resume this upside move. Therefore we expect more downside reactions based on the bearish candle stick pattern obviously formed on the 4h chart in addition to clear overbought signs appearing on stochastic and MAâ€™s of RSI indicators opening the way for further decline towards 907.00 (intraday basis initial support areas); particularly if it succeeded to make a four hour candle stick close below 930.00 zones (38.2%) Fibonacci of the short term wave started at 1006.00(Feb.20th -2009) to 882.00 (Mar.18th -2009).
The trading range for today is among the key support now at 900.00 and key resistance now at 984.00.
The general trend is to the upside as far as 820.00 remains intact with targets at 1035.00 and 1060.00.
|According to our analysis, we believe that it is good to sell gold at 933.00 with targets at 912.00 and stop loss at 950.00|