Weekly Report 12/07 -16/ 07 / 2010
Gold succeeded in reaching the first technical objective of our previous report at 121.400 zones as seen on the provided daily chart. The long white candlestick structure alongside the positive signs appearing on Stochastic and AROON suggest that the bullish effect of our previous explained harmonic formation could continue during this week towards the second technical target of the pattern at 1232.00 zones-61.8% Fibonacci of CD leg- while the extended targets reside around 1244.00 areas. A break of 1216.00-SMA value- could accelerate this proposed positive scenario.
The trading range for this week is among the key support at 1165.00 and key resistance now at 1253.00.
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 ReportSupport1202.001196.001192.001187.001183.00Resistance1216.001219.001225.001233.001244.00RecommendationBased on the charts and explanations above our opinion is, buying gold around 1202.00 targeting 1233.00 and stop loss below 1177.00 might be appropriate.