Gold Technical Precious Metals (2011-07-28)

By @ibtimes on

Morning Report

After touching the first suggested technical target of the bullish CD wave at 1627.00 -check yesterday's report- the metal showed downside correctional movements that were limited around the pivotal support of 1609.00 as seen on the provided daily graph. There is a shaky crossover on Stochastic and it may cause some kind of fluctuation; but Vortex reflects the strength of the bullish trend. Henceforth, the CD leg of the harmonic Deep Crab pattern may continue; particularly if the pair succeeded in penetrating the resistance of 1627.00-1628.00. Technical targets of the PRZ for our captured harmonic formation are seen on the graph. Conversely, areas around 1585.00 should hold to protect this scenario.

The trading range for today is among the key support at 1574.00 and key resistance now at 1645.00.

The general trend over the short term basis is to the upsidetargeting 1694.00 per ounce as far as areas of 1430.00 remain intact with weekly closing.

Previous Report

Weekly ReportSupport1609.001600.001595.001585.001574.00Resistance1620.001627.001632.001635.001642.00RecommendationBased on the charts and explanations above our opinion is, buying gold around 1612.00 targeting 1645.00 and stop loss below 1590.00 might be appropriate.

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