Weekly Report 27/12 -30/ 12/ 2011
Respecting our previous proposed bearishness, the metal slipped after clearing 1603.00-1602.00 zone as seen on the provided daily chart. This decline has been capable of activating a confirmed negative crossover on Stochastic that could assist gold to reach the extended technical objectives of our accurate bearish harmonic AB=CD pattern since trading is still seen below 76.4% Fibonacci of CD leg for the pattern. Fibonacci projection of 127.2% of the aforesaid leg is under our technical microscope now.
The trading range for this week is among the key support at 1475.00 and key resistance now at 1673.00.
The general trend over the short term basis is to the upsidetargeting 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 1602.00 targeting 1533.00 and stop loss above 1646.00 might be appropriate.|