Weekly Report 05/12 -09/ 12/ 2011
We defined areas 1755.00 and 1765.00 to be the ceiling of any upside attempts during the previous week and they succeeded in forcing the metal to move lower ahead of Friday's closing as seen on the provided graph. The negative picture will not be activated unless we witness a sustained breakout below 1740.00 zones despite the bearish tendency appearing on the daily chart-secondary image-. Be careful since Stochastic over four-hour interval is on its way to enter oversold areas and may activate heavy fluctuation before the awaited breakout occurs. Finally, taking 1765.00 levels will damage the bearish probability.
The trading range for this week is among the key support at 1665.00 and key resistance now at 1825.00.
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 below 1740.00 targeting 1695.00 and stop loss above 1767.00 might be appropriate.|