Weekly Report 12/04 -16/ 04 / 2010

After breaching the key resistance levels of 1155.00-1156.00 zones, gold has taken 1162.00 with the weekly closing. Therefore, we still think that the duplicated harmonic formation might take the CD leg towards 1183.00 zones. Note that, potential fluctuation and retesting actions for the broken resistance might occur to relieve the momentum indicators before resuming the awaited bullishness during this week towards 1183.0076.4% Fibonacci for the wave from the all-time high at 1125.00 to 1044.00. The problem is; we have to watch out the price actions around 1183.00 carefully as it might act as strong reversal areas.

The trading range for this week is among the key support at 1122.00 and key resistance now at 1204.00.

The general trend over short term basis is to the downside, targeting 1025.00 per ounce as far as areas between 1225.00 and 1249.00 remain intact.

Previous Report

Support1162.001155.001149.001144.001132.00
Resistance1166.001169.001172.001176.001183.00
RecommendationBased on the charts and explanations above our opinion is, buying gold from 1155.00 targeting 1183.00 and stop loss below 1132.00 might be appropriate.