Weekly Report 17-21/ 10/ 2011

Stochastic is still attempting to give the required bearish sign over daily studies where the entire correctional movements from 1533.00 to the current levels are still trapped below the neckline areas of the double top formation. The classical double top structure hasn't reached its scientific technical target yet, warning a new downside move may start sooner, noting that the possibility of drawing a rising wedge pattern increased. A break of 1702.00 will indicate that the bearish effect of the double top pattern has been limited earlier at 1533.00, while breaching through 1653.00 will accelerate the awaited negative scenario.

The trading range for this week is among the key support at 1575.00 and key resistance now at 1785.00.

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.

Previous Report

 
Support1673.001653.001635.001627.001615.00
 
Resistance1687.001702.001715.001728.001735.00
 
RecommendationBased on the charts and explanations above our opinion is, selling gold with a breakout below 1653.00 targeting 1575.00 and stop loss above 1702.00 might be appropriate.