Weekly Report 03/01 -07/ 01/ 2011
Stabilizing above the pivotal areas of 1406.00-1413.00 made us look at the chart from a classical point of view, where we can see a classical structure that is trending upwards between two contracting support and resistance lines. The resistance resides around 1438.00, while the support is at 1378.00. At the same time, gold is moving towards the resistance but momentum indicators show overbought signs. Consequently, the neutrality is in favor for the time being and we recommend following us for more until we catch a clearer sign to pinpoint the upcoming direction.
The trading range for this week is among the key support at1378.00 and key resistance now at 1475.00.
The general trend over the short term basis is to the downside, targeting $ 1208.00 per ounce as far as areas of 1485.00 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move.|