Gold Weekly Technical Report 1-5/10/2012

After the sharp recovery last Thursday, the metal has achieved a recovery to confront 1785.00 regions again. But, the downside actions from 1783.00 -Friday’s recorded high- made us suspect that the recovery from 1736.00 could be limited, influenced by the bearishness on RSI 14 and MACD. Having said so, we will watch the price behaviors as well until the initial support zones between 1754.00 and 1749.00 to confirm the negativity on technical indicators.

The trading range for this week is expected among the key support at 1700.00 and key resistance now at 1815.00.

The short term trend is to the upside targeting 1945.00 per ounce as far as areas of 1520.00 remain intact with a weekly closing. 

Support    1754.00    1740.00    1725.00    1713.00    1698.00
Resistance    1775.00    1788.00    1795.00    1800.00    1805.00
Recommendation    Based on the charts and explanations above our opinion is, selling the metal below 1754.00 targeting1700.00 and stop loss above 1788.00 might be appropriate.