Weekly Report 23/01 -27/01/ 2012
With a daily closing above the initial resistance-turned into support- of 1665.00, the metal has found a rational reason to continue its upside recovery. Actually, we can also see SMA 50-colored in red- carrying the bullishness from below. Actually, there are signs of weakness over shorter time frames such as the four-hour interval and it may cause some kind of fluctuation during the upcoming sessions. But, the bullish scenario anticipated for this week will not be changed unless the metal takes the weekly support at 1628.00. Ultimately, breaching 1703.00 will bring more buying interests towards 1725.00 zones.
The trading range for this week is among the key support at 1574.00 and key resistance now at 1762.00.
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.
Based on the charts and explanations above our opinion is, buying gold around 1665.00 targeting 1725.00 and stop loss below 1628.00 might be appropriate.