Gold Technical Precious Metals (2012-04-26)

The pair reached the lowest yesterday at 1624.00 and then rebounded sharply to the upside to settle now in areas around the resistance of 1654.00 again. This move indicates that forming the suggested harmonic structure is still valid, which drives us to expect an upside move today as gold is forming the CD leg of this structure. Stochastic is within overbought areas which might trigger heavy fluctuations, but still, a breach of the resistance at 1654.00 should eliminate the effect of this indicator.

The trading range for today is among the key support at 1598.00 and key resistance now at 1700.00.

The short-term trend is to the upside with steady weekly closing above 1475.00 targeting 1945.00

***New York Candlesticks***

Previous Report

Weekly Report

Support
1638.00
1632.00
1628.00
1624.00
1608.00

Resistance
1650.00
1654.00
1662.00
1666.00
1673.00

Recommendation
Based on the charts and explanations above our opinion is buying gold around 1638.00, targeting 1681.00, 1694.00 and 1700.00 and stop loss with 4-hour closing below 1624.00 might be appropriate.