Gold Weekly Technical Report 22-26/10/2012

 Gold rebounds after testing 1720.00 key support level, we mentioned earlier that the aforementioned support should hold for the correction not extend further. We look for a continuation of the upside rebound this week , as Momentum indicators are signaling oversold conditions while price is near 1720.00 barrier. Holding above this level is required for the bullish scenario to remain intact.

The trading range for this week is expected among the key support at 1685.00 and key resistance now at 1780.00.

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.

The chart is based on GMT timezone

Support    1720.00    1700.00    1690.00    1675.00    1655.00
Resistance    1728.00    1735.00    1747.00    1756.00    1775.00
Recommendation    Based on the charts and explanations above, we recommend buying gold around 1715.00 targeting 1735.00, 1755.00 and 1780.00. Stop loss four-hour closing below 1700.00