Gold Technical Precious Metals (2010-02-17)

 @ibtimes on February 17 2010 12:21 AM

Morning Report

Gold is struggling to stabilize above 261.8% Fibonacci level of BC leg for our caught bearish harmonic AB=CD pattern, seen on the provided four-hour chart. We think that the overbought signs appearing on momentum indicators might force it to activate negative pressure, particularly if it succeeded in breaching 1115.00 levels. Thus, potential downside actions might be seen over intraday basis.

The trading range for today is among the key support at 1088.00 and key resistance now at 1144.00.

The general trend is to the upside as far as 865.00 remains intact with targets at 1249.00.

Weekly Report Previous ReportSupport1115.001111.001109.001107.001098.00Resistance1122.001125.001132.001137.001144.00RecommendationBased on the charts and explanations above our opinion is, selling gold with a breakout below 1115.00 targeting 1098.00and stop loss above 1128.00 might be appropriate.

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