Gold Technical Precious Metals (2011-02-11)

By @ibtimes on

Morning Report

After yesterday's downside move, gold returned to trade around the 61.8% of CD from the AB=BC bullish pattern. Gold is attempting to test 76.4% correction of the same leg at 1372.00 and might extend towards 1380.00-1384.00, the 88.6% correction. On the other hand, we should remain very cautious as the upside move which is expected to continue today is merely correctional for the preceding downside move from areas above 1400.00, A four-hour closing below 1344.00 signals the bearishness for gold once more.

The trading range for today is among the key support at 1335.00 and key resistance now at 1395.00.

The short term trend is to the downside targeting 1208.00 per ounce as far as areas of 1485.00 remain intact.Support1358.001352.001348.001340.001335.00Resistance1366.001372.001376.001380.001384.00RecommendationBased on the charts and explanations above, our opinion is buying gold around 1358.00 targeting 1395.00 and stop with four-hour below 1344.00 might be appropriate

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