Weekly Report 03/10 -07/ 10/ 2011
Gold closed negatively for the third consecutive day below SMA 100 as seen on the provided daily graph. At the same time, we can notice the clear bearish sign on Vortex indictor as a representative for the trend indicators that reflects the strength of the bearish trend started at 1920.00 and was accelerated below the neckline areas of the suggested double top formation. Our classical pattern didn't reach its scientific technical target at 1475.00-1470.00 zones and will be valid as far as 1702.00 -the neckline- areas remain intact. Of note, a break of 1615.00 will actuate the metal to retest 1575.00, followed by 1533.00 once more.
The trading range for this week is among the key support at 1533.00 and key resistance now at 1752.00.
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.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold around 1648.00 targeting 1560.00 and stop loss above 1702.00 might be appropriate.|