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Technical Precious Metals
Written by article default Thursday, 27 January 2011 17:53
GoldMidday Report
The metal is declining gradually towards the support of 1335.00-1330.00, where we believe that it will gather the required momentum to move upwards once more. This upside wave is just a temporal direction, based on the completion of the bullish harmonic AB=CD pattern at PRZ 1. Stochastic is still close to the overbought areas and that might cause some kind of fluctuation. The bullishness will be valid as far as 1302.00-1298.00 areas remain intact.
The trading range for today is among the key support at 1298.00 and key resistance now at 1384.00.
The general trend over the short term basis is to the downside targeting $1208.00 per ounce as far as areas of 1485.00 remain intact.
| Support | 1335.00 | 1330.00 | 1327.00 | 1322.00 | 1312.00 |
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| Resistance | 1344.00 | 1350.00 | 1355.00 | 1360.00 | 1366.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1335.00 targeting 1384.00 and stop loss with a four hour closing below 1298.00 might be appropriate. | ||||