Weekly Report 24/10 -28/ 10/ 2011
As we mentioned in our previous report, trading below the lower line of Keltner channel is considered to be an oversold signal; thus, the metal retraced from 1610.00 zones as seen on the provided daily graph. Now, the bullishness on Stochastic may cause a retest for the previous broken SMA 100 -colored in green- where it will also retest the previous broken support line for the minor rising wedge pattern before moving downwards once more, supported by the major double top structure that still has downside targets to be reached. Only a breakout with a daily closing above the neckline areas around 1702.00 will damage the bearish outlook and will make us reconsider the technical target of the aforesaid classical negativity.
The trading range for this week is among the key support at 1533.00 and key resistance now at 1728.00.
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 1595.00 and stop loss above 1702.00 might be appropriate.|