Weekly Report 04/04 -08/ 04/ 2011
The four hour chart shows how gold stabilized between 1438.00 and 1424.00, where we did not see any four hour closing outside this trading range. The bearish harmonic formation, which was done by placing a top at 1447.00, is still in favor. We should beware as areas of 1463.00 could be visited, where 161.8% of XA exists to complete an ideal harmonic crab pattern. Any four hour closing below 1424.00 could send the metal lower towards 61.8% of CD leg at 1409.00, followed by 1401.00-76.4% Fibonacci-. Anyway, we suggest a bearish wave but we need a four hour closing below 1424.00.
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, selling gold with a four hour closing below 1424.00 targeting 1401.00 and stop loss with a four hour closing above 1438.00 might be appropriate.|