Gold Technical Precious Metals (2012-04-16)

Gold declined to breach 23.6% Fibonacci correction at 1653.00 and continues to trade with a downside bias approaching a retest of the descending channel's resistance that was previously breached and now turned into support at 1642.00. This decline accompanies momentum indicators entering oversold areas which offer the possibility for an upside rebound from the mentioned areas. Therefore, we prefer to stay neutral for now and observe trading around 1642.00 as a breach of which will revive the bearishness and halts the upside correction that started from the recorded trough at 1612.00.

The trading range for this week is among the key support at 1612.00 and key resistance now at 1680.00.

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

Support
1642.00
1638.00
1635.00
1628.00
1622.00

Resistance
1653.00
1662.00
1666.00
1670.00
1680.00

Recommendation
Based on the charts and explanations above we recommend observing trading today awaiting more confirmations