Gold Weekly Technical Report 20-24/5/2013

The yellow metal is moving downwards for the eighth trading day approaching the initial support of 1321.00 as seen on the provided daily chart. Being covered by SMA 20 and SMA 50 in addition to the negativity on candlestick formation argue us to suggest further debasement this week; noting that a break below 1321.00 will bring aggressive downside actions. RSI 14 may cause some kind of fluctuation but MACD solidifies the technical anticipations of resuming the downtrend by drawing a negative crossover below its histogram.

** Short term (Less than three months)

** Chart is based on GMT+2 timing

Notes: 

*if price reaches within 20% from target before triggering entry, signal is canceled and not valid anymore.