Weekly Report 21/11 -25/ 11/ 2011
Looking at Friday's closing, we will notice that the metal has closed negatively below 38.2% Fibonacci retracement of the CD leg for our accurate bearish harmonic AB=CD pattern. Hence, the path is clear for reaching the second technical objective of the pattern at 61.8% followed by the first extended technical target at 76.4% level. Actually, the recently drawn negative sign on AROON indicator argues us to say that 76% will be reached. Ultimately, a break of 1703.00 will add further confirmation for our proposed harmonic scenario but on the other side, areas of 1785.00 should hold to protect it.
The trading range for this week is among the key support at 1627.00 and key resistance now at 1800.00.
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, selling gold around 1728.00 targeting 1650.00 and stop loss above 1785.00 might be appropriate.|