Weekly Report 29/08 -02/ 09/ 2011
The metal inclined violently, approaching the technical objective, previously detected in our Friday's reports at 1845.00. The IM-impulsive- wave consisting of five waves from 1477.00 continues dominating the four hour graph, where we believe that the fourth wave has been placed at 61.8% Fibonacci retracement of the third wave started 1580.00 to all-time high of 1912.00. Now, we can see Parabolic SAR is carrying the movements from below; whilst the AROON is positive, solidifying the technical idea of resuming the upside rally the fifth wave during this week. A break above 1833.00 will be a very positive indication.
The trading range for this week is among the key support at 1700.00 and key resistance now at 1945.00.
The general trend over the short term basis is to the upside, targeting $ 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.
Previous ReportSupport1800.001785.001755.001746.001726.00Resistance1833.001854.001877.001895.001912.00RecommendationBased on the charts and explanations above our opinion is, buying gold around 1805.00 targeting 1890.00 and stop loss below 1750.00 might be appropriate.