Trading is within a sideways channel between the 38.2% and the 50% correction for the upside wave the started on 20-01-2009 between a resistance level at 42.50 and a support level at 40.60. A support level which is the 50% correction is supported by the 100 MA on the four hour chart. We are still witnessing that the bearish pattern remains pressuring the contract to the downside where it needs a four hour close below 40.60 to target 38.80 and 35.80 which are the 61.8% and 100% extension for the descending channel that started on 26-01-2009. The downside movements remains as far as trading is below 45.25 which is the key resistance for the downside channel and will be confirmed with a four hour close below 40.60.
The trading range for today is among the key support at 35.80 and the key resistance at 45.25
The general trend is to the downside as far as 52.00 remains intact with targets at 34.85 and 32.25
Gold update for 02/02/2009
Gold is moving below one of the most critical points at 907.00 (cluster resistance turned support) and as we mentioned in our Friday's midday report that the bigger scenario of the harmonic pattern can make an extreme expansion to the 933.00 POTENTIAL REVERSAL ZONE (PRZ) as a target of (D) before correcting to the upside move. The point now is as far as we move upward the point of breaking the uptrend approaches and it's now at the areas of 902-900.00. A clear break of which will accelerate the correction scenario towards 851.00 areas as a first target of the bearish harmonic pattern.
The trading range for today is among the key support now at 856.00 and key resistance now at 945.00 areas.
The general trend is to the downside as far as 934.00 remains intact with targets at 649.20 and 615.60
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