Weekly Report 10/10 -14/ 10/ 2011
The fluctuation continues below the neckline areas of the previous explained double top formation that didn't achieve its scientific technical objective at 1475.00 until now. Friday's negative closing below SMA 100 and the negativity on Vortex are technical factors that encourage us to suggest potential downside move during this week. The bearishness will be valid as far as 1702.00 -the neckline- areas remain intact. 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 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, selling gold around 1665.00 targeting 1575.00 and stop loss above 1702.00 might be appropriate.|