Weekly Report 14/11 -18/ 11/ 2011
The metal has moved upwards on Friday's trading threatening our suggested bearish harmonic AB=CD pattern which didn't reach its projected technical objectives as 38.2% Fibonacci of CD leg-the first technical target of this harmonic study- resides at 1726.00. Furthermore, Stochastic succeeded in overlapping positively and that may take gold towards the second potential reversal zones -D 2- at 1842.00, but we have two technical obstacles which prevent us form suggesting more upside actions as follows:
The solidity of 1803.00 resistance.
The overbought sign appearing on the four-hour interval.
Consequently, we will avoid trading until the metal shows the ability to beat 1803.00; otherwise, the major bearish harmonic AB=CD will be valid.
The trading range for this week is among the key support at 1702.00 and key resistance now at 1885.00.
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, staying aside until an actionable setup introduces itself to pinpoint the upcoming big move.|