Gold Weekly Technical Report 27-31/10/2014

The metal started this week with weak trading below 38.2% correction at 1236.15 and below Linear Regression Indicator 34. We also notice weakness on both MACD and RSI. Despite that, Linear Regression Indicators are trading positively till now, but we will montior the price between the referrred to 1236.15 from the upside and 1215.75 from the downside, whereas the $15 range between them are unclear and Risk/Reward Ratios are inappropriate.

In our weekly report, we will remain on the sidelines and monitor the metal now to see whether the bullish correctional wave is over, or the price could touch the target 1269.15 before moving back to the downside. A break below 1215.75 will retest the support 1200.00 and 1182.00, while trading above 1236.15 brings back the positive outlook in a new attempt to reach the referred to target represented in 61.8% correction at 1269.15 levels.