Weekly Report 21/03 -25/ 03/ 2011
Gold opened with a gap, makes us look again at the harmonic butterfly as the metal is moving above C point. Stochastic is showing a positive crossover but at the same time, we may witness a gap covering process that could send gold lower below C point once more at 1420.00-1425.00. Trading above C point will take us towards 127.2% of CD leg of the harmonic structure; whilst stability below 1410.00 with a daily closing will bring more negativity. Thereby, we will remain on sidelines until an actionable set up presents itself above 1425.00 or below 1410.00 zones.
The trading range for this week is among the key support at 1376.00 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.
|Recommendation||Based on the charts and explanations above our opinion is, staying aside until a clearer signs appears to pinpoint the upcoming big move.|