Weekly Report 14/03 -18/ 03/ 2011
The metal didn't achieve a daily closing below 1410.00, where 88.6% Fibonacci of CD leg of the bullish butterfly pattern exists. Thereby, the pattern is still efficient and the bullishness might continue during this week. All what we need now is a positive closing over four hour interval above 1430.00. Conversely, if it failed to stabilize above 141000-1400.00 zones, this bullish scenario will be canceled out.
The trading range for this week is among the key support at 1360.00 and key resistance now at 1474.00.
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, buying gold with a four hour closing above 1430.00 targeting 1494.00 and stop loss with a daily closing above 1402.00 might be appropriate.|