Weekly Report 12/09 -16/ 09/ 2011
The sharp pullback from 1825.00 zones that occurred before Friday's closing is seen as a positive indication as it took the metal again above Parabolic SAR indicator. Furthermore, the support areas around 50% for the upside rally from the start point of the fifth wave to all-time recorded high have proved its solidity. Thereby, we still see that the IM -impulsive- wave which started at 1477.00 is still in progress, softly targeting 1945.00 zones. Only a break back below 1785.00 -61.8% Fibonacci- will threaten the bullish momentum, while a break below 1754.00-1746.00 will give us reasons for concern.
The trading range for this week is among the key support at 1746.00 and key resistance now at 1945.00.
The general trend over the short term basis is to the upsidetargeting 1945.00 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 above 1833.00 targeting 1912.00 and stop loss below 1785.00 might be appropriate.|