Weekly Report 28/11 -02/ 12/ 2011
The metal has inclined during the Asian session affected by the oversold sign on Stochastic where it entered the resistance areas of 50% Fibonacci of the upside rally from 1603.00 to 1802.00 as seen on the provided four-hour graph. The pivotal weekly resistance levels around 1737.00-1740.00 should hold to protect the expected bearishness. Our proposed negative scenario is based on the negative pressure of SMA 50-red- and RSI indicator which is gradually entering overbought areas. Follow us in the midday report as we will introduce an intraday harmonic possibility.
The trading range for this week is among the key support at 1627.00 and key resistance now at 1785.00.
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 ReportSupport1698.001687.001673.001665.001650.00Resistance1715.001728.001735.001745.001756.00RecommendationBased on the charts and explanations above our opinion is, selling gold below1705.00 targeting 1650.00 and stop loss above 1740.00 might be appropriate.