Gold Technical Precious Metals (2012-04-18)

Since the beginning of the week gold has been trading within a tight range, and this range resides above the resistance for the downside wave that started from 1790.00 to 1612.00. Steady trading above 1624.00 supports the expectations for an intraday upside move and that is supported by the suggested harmonic formation above. We need to confirm the upside move once again above 23.6% correction at 1653.00 per ounce.

The trading range for today is among the key support at 1624.00 and key resistance now at 1700.00.

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 Report

Support
1650.00
1645.00
1638.00
1632.00
1628.00

Resistance
1662.00
1666.00
1673.00
1680.00
1690.00

Recommendation
Based on the charts and explanations above our opinion is buying gold above 1650.00 and take profit at 1681.00, 1694.00, and 1700.00 and stop loss with four-hour closing below 1624.00 might be appropriate