Gold Technical Precious Metals (2011-11-09)

By @ibtimes on

Morning Report

After touching the psychological level of 1800.00, the metal has retreated once more as seen on the provided daily graph. It is currently hovering around 200% Fibonacci projection of BC leg of our suggested bearish harmonic AB=CD pattern that started at the significant low of 1533.00. At the same time, we can notice the negative divergence in addition to the negative crossover appearing on Stochastic that could assist it to adopt a favorable reaction to the harmonic pattern. As a consequence, we hold onto our bearish anticipations; noting that 1842.00 areas represent the second PRZ of the pattern and it should protect the bearish scenario.

The trading range for today is among the key support at 1728.00 and key resistance now at 1842.00.

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.

Previous Report

Weekly ReportSupport1773.001765.001753.001745.001735.00Resistance1795.001800.001815.001830.001842.00RecommendationBased on the charts and explanations above our opinion is, selling gold around 1795.00 targeting 1729 and stop loss above 1835.00 might be appropriate.

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