Weekly Report 30/08 -03/ 09/ 2010
Gold retraced sharply from 127.2% Fibonacci level of the second drive for the bearish harmonic three drives pattern as seen on the provided four-hour chart. Actually, the PRZ of this pattern could be seen at 127% or 161.8% and that's why we look at the daily chart-secondary image- and we have found out three negative signs thatmight cause bearish actions during this week as follows:
1-A negative divergence appears on Stochastic.
2-A negative crossover appears clearly on Stochastic.
3-A clear bearish candlestick formation.
The metal should ignore these negative factors to reach 161.8% so that we will look downwards as far as 1256.00 remains intact.
The trading range for this week is among the key support at 1192.00 and key resistance now at 1265.00.
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.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold around 1237.00 targeting 1209.00 and stop loss above 1256.00 might be appropriate.|