Weekly Report 08-12 / 03 / 2010

Actually, gold is moving within very sensitive areas that represent 76.4% Fibonacci level for the downside rally from 1162.00 to 1044.00, while 1137.00 zones represent 127% from the BC leg of a suggested bearish harmonic AB=CD pattern. Therefore we believe that the metal could pullback to the downside during this week. A break of 1162.00 is able to damage this bearish anticipation and if that occurred, the pivotal resistance areas of 1185.00 could be retested easily. Stochastic and AROON support this negative scenario.

The trading range for this week is among the key support at 1095.00 and key resistance now at 1185.00.

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

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling gold from 1137.00 targeting 1102.00 and stop loss above 1062.00 might be appropriate.