Weekly Report 26/09 -30/ 09/ 2011

Our previous proposed Elliott count over four-hour interval has been negated since the metal has collapsed on Friday forcing us to leave the smaller time frames behind us. Now, we will look classically at daily studies, where we can see that Friday's decline has been capable of taking the metal below the neckline of a double top formation. Moreover, gold has closed negatively below SMA 50 for the first time since the first week of July, 2011. Moreover, the weekly long black candlestick pattern is seen as a confirmed sign for the classical reversal pattern. Stochastic and Vortex indicators solidify the negative scenario. A break of 1575.00 will ease the path towards the technical target of the pattern at 1475.00.

The trading range for this week is among the key support at 1492.00 and key resistance now at 1785.00.

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.

Previous Report

 
Support1575.001540.001525.001490.001475.00
 
Resistance1610.001635.001648.001673.001702.00
 
RecommendationBased on the charts and explanations above our opinion is, selling gold around 1605.00 targeting 1475.00 and stop loss above 1674.00 might be appropriate.