Weekly Report 07/03 -11/ 03/ 2011
After breaching 1425.00 levels, touching 1455.00 levels becomes easier. Theses levels represent 127.2% Fibonacci projection of CD leg of our caught butterfly pattern. The ascending channel, with the support around 1416.00 protects the bullishness since it reduces the effect of the negativity appearing on momentum indicators. Thereby,the bullishness may dominate the direction during this week, while a break of 1455.00 will send the pair higher towards 1473.00 areas, followed by 1494.00. There is another technical note, which was explained in a previous report and it also confirms the bullish probability-click here to review it-.
The trading range for this week is among the key support at 1276.00 and key resistance now at 1494.00.
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.
Support1432.001425.001416.001406.001395.00Resistance1438.001445.001452.001455.001473.00RecommendationBased on the charts and explanations above our opinion is, buying gold around 1425.00 targeting 1494.00 and stop loss with a daily closing below 1402.00 might be appropriate.