Weekly Report 16/01 -20/01/ 2012

The solid resistance around 1665.00 has forced the metal to decline activating an obvious negative crossover on Stochastic as seen on the provided daily chart. Henceforth, the CD leg of the suggested harmonic Bat pattern is still valid as far as B point holds. A break of 1628.00 will confirm the bearishness proposed for this week while clearings 1603.00 will accelerate declines and will change the positivity of Vortex indicator.

The trading range for this week is among the key support at 1559.00 and key resistance now at 1703.00.

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 Report

 

Support
1628.00
1607.00
1596.00
1582.00
1573.00

 

Resistance
1650.00
1665.00
1673.00
1687.00
1695.00

 

Recommendation
Based on the charts and explanations above our opinion is, selling gold below 1628.00 targeting 1573.00 and stop loss above 1665.00 might be appropriate.