Weekly Report 09/01 -13/01/ 2012
In line with our previous technical comment, Stochastic over daily studies has overlapped negatively activating the suggested bearish harmonic structure on the indicator. Having a look at the harmonic formation-colored in grey- will reveal that the CD leg of the potential Crab pattern is still under formation but we need to witness a sustained breakout below the pivotal support of 1603.00 to make sure that the upside move from 1522.00 is just a normal recovery for the bearishness started at 1800.00 zones. Of note, a break below 1603.00 will activate a clear negative sign on Vortex.
The trading range for this week is among the key support at 1522.00 and key resistance now at 1673.00.
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 1603.00 targeting 1533.00 and stop loss above 1650.00 might be appropriate.|