Gold Technical Precious Metals (2011-08-19)

By @ibtimes on

Morning Report

Gold succeeded in reaching our yesterday's detected technical objective of 1830.00 very easily and very quickly, confirming the impulsive nature that dominates the current trend. Moving to the four-hour timescale will reveal the internal structureof the internal fifth wavediscussed inthe daily studiesearlier-we recommend reviewing the previous report for more details about the bigger picture- .We know that the fifth wave itself consists of 5 waves; thus, we are probably witnessing the third wave-blue- of the bigger fifth with soft technical target at 1872.00. To recap, the bullishness is in still favored over intraday basis, supported by the positivity appearing on trend indicator. As for momentum indication, RSI 14 will be in need for relief sooner or later as it is presently valued at 80.00.

The trading range for today is among the key support at 1785.00 and key resistance now at 1888.00.

The general trend over the short term basis is to the upside, targeting $ 1888.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.

Previous Report

Weekly ReportSupport1835.001830.001815.001803.001795.00Resistance1853.001862.001872.001880.001888.00RecommendationBased on the charts and explanations above our opinion is, buying gold around 1832.00 targeting 1872.00 and stop loss below 1803.00 might be appropriate.

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