Gold Technical Precious Metals (2011-02-08)

By @ibtimes on

Morning Report

Gold did not reflect any downside tendencies before resuming the upside move, and currently the metal is stable below 38.2% correction of CD leg from the bullish Butterfly Pattern. The metal is also stable above the SMA 20 signaling further bullishness towards 61.8% correction at 1380.00, the second harmonic target. Stochastic is overbought which is why we await signals for the downside correction or fluctuation before the metal resumes the suggested scenario.

The trading range for today is among the key support at 1312.00 and key resistance now at 1380.00.

The short term trend is to the downside targeting 1208.00 per ounce as far as areas of 1485.00 remain intact.Support1348.001344.001339.001335.001327.00Resistance1355.001360.001366.001372.001376.00RecommendationBased on the charts and explanations above, our opinion is buying gold around 1344.00 targeting 1380.00 and stop with four-hour closing below 1322.00 might be appropriate

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