Weekly Report 21/02 -25/ 02/ 2011
Gold touched 1395.00 levels- the suggested technical objective of previous week report-. This level represents the extended technical target of the harmonic butterfly pattern. This week's opening gap in addition to the overbought sign of momentum indicators suggest that some kind of correction might be witnessed to build a base around 61.8% of CD leg of the CD leg, where the moving averages exist before resuming the bullishness towards 88.6% of CD leg to meet the harmonic resistance at 1406.00-141.00. Stability above 1380.00 is needed to keep this scenario valid, while stability above 1358.00 is required to keep the bullishness valid during this week.
The trading range for this week is among the key support at 1344.00 and key resistance now at 1452.00.
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.
Previous ReportSupport1384.001380.001375.001364.001358.00Resistance1395.001406.001410.001425.001432.00RecommendationBased on the charts and explanations above our opinion is, buying gold around 1380.00 targeting 1410.00 and stop loss with a daily closing below 1364.00 might be appropriate.