Gold Weekly Technical Report 26-30/11/2012

Gold has finally broken the key resistance area around 1737.00 level, which sent price directly towards the next resistance level at 1753.00, settling well above the 50-days SMA. The awaited breakout suggests further gains for gold this week , RSI crossed above 60 confirming the bullish momentum. 1730.00 should form a floor for trading within the upcoming period, where we target 1800.00 as the main upside target.

The trading range for this week is expected among the key support at 1730.00 and key resistance now at 1800.00

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 1745.00 1738.00 1735.00 1729.00 1723.00

Resistance 1755.00 1764.00 1774.00 1780.00 1787.00

Recommendation Based on the charts and explanations above, we recommend buying gold above 1738.00 targeting 1755.00 and 1775.00. Stop loss below 1722.00