Weekly Report 24/05 -28/ 05 / 2010
Gold closed negatively on the weekly chart-secondary image- but our main daily chart shows that, Stochastic has been able to overlap positively, signaling that it is in a definite need for being relief. Therefore we believe that, the current correction for the downside rally from the all-time high of 1249.00 to 1165.00 might continue towards 1196.00-1198.00 zones before resuming the possible bearish actions during this week as the bearish harmonic pattern-three drives pattern- still has downside targets to be reached.
The trading range for this week is among the key support at 1120.00 and key resistance now at 1249.00.
The general trend over the short term basis is to the upside, targeting $ 1365.00 per ounce as far as areas of 1120.00 remain intact.
Previous ReportSupport1176.001171.001165.001155.001144.00Resistance1187.001196.001202.001212.001216.00RecommendationBased on the charts and explanations above our opinion is, selling gold from 1196.00 targeting 1144.00 and stop loss above 1232.00 might be appropriate.