Gold Technical Precious Metals (2012-02-23)

By @ibtimes on

Morning Report

Breaching areas of 1763.00 supported gold to move strongly higher to negate our negative expectations for today. Stochastic shows heavy overbought signals that might trigger the downside correction, yet assessing the chart above, we can see gold stable above top C of the double harmonic pattern. Stability above 1763.00 might cause an upside move to test the horizontal resistance areas at 1794.00 and a breach of which will support the move towards the extended target at 127.2% at 1828.00. Therefore, according to the harmonic expectations we see valid chances for the metal to move higher with steady trading above 1735.00 and preferably 1763.00.

The trading range for today is among the key support at 1705.00 and key resistance now at 1794.00.

The short-term trend is to the upside targeting 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.

Previous Report

Weekly ReportSupport1768.001763.001754.001750.001742.00Resistance1777.001780.001794.001810.001828.00RecommendationBased on the charts and explanations above our opinion is buying gold around 1768.00 and take profit at 1777.00, 1794.00, and 1828 and stop loss with four-hour closing below 1735.00 might be appropriate

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