Weekly Report 05/09 -09/ 09/ 2011
The last positive weekly candlestick has fixed the bearishness candle the week before as seen on the secondary image. This bullish candlestick formation offers the required technical evidence that the metal is still drawing the previous explained IM -impulsive wave- from 1.477.00 zones which suggests new historical highs over upcoming sessions. RSI 14 needs to be relieved before; thus, some kind of bounce might be witnesses before moving higher once more. Note that TEMA 20 and Parabolic SAR are coving the current upside actions as well.
The trading range for this week is among the key support at 1815.00 and key resistance now at 1945.00.
The general trend over the short term basis is to the upsidetargeting1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above our opinion is, buying gold around 1865.00 targeting 1945.00 and stop loss below 1815.00 might be appropriate.|