Weekly Report 28/03 -01/ 04/ 2011
The bullishness was limited around 1447.00 zones, where signs of drawing a bearish harmonic structure appeared as seen on our provided image. This structure could be a crab or a butterfly pattern but both of them are not ideal. Since the price stabilized again below X point, we will depend on the aforementioned structure. Gold is currently trading around 38.2% Fibonacci of CD leg of the pattern at 1424.00- first technical target-, A stable move below it will rekindle more bearishness towards the second technical objective at 61.8% of CD leg at 1409.00. To conclude, our outlook will be bearish during this week, noting that a breakout below 61.8% will take us towards 1401.00 areas.
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.
Previous ReportSupport1420.001416.001409.001401.001395.00Resistance1430.001438.001445.001452.001455.00RecommendationBased on the charts and explanations above our opinion is, selling gold around 1424.00 targeting 1401.00 and stop loss above 1438.00 might be appropriate.