The price reached 51.60 and couldn't reach our target at 50.95 after covering the gap as shown on the above chart, this action was followed by a sharp break out above 52.55 again and started to move steadily above 53.00. Hence this stability above 52.55 shows that the short and medium term trading systems change the direction to the upside inside the inclining channel targeting 55.25 and 56.50 as far as 52.60 remains unbroken.
The trading range for today is among the key support at 48.15 and the key resistance at 56.50.
The general trend is changing to the upside as far as 52.60 remains intact with targets at 64.50.
Support: 52.60, 52.20, 51.60, 50.95, 50.25
Resistance: 53.95, 54.55, 55.20, 55.95, 56.50
Recommendation: According to our analysis, we believe that it's good to buy the contract above 52.60 with targets at 53.95 followed by 55.20 and stop loss with a four hour close below 51.60.
Gold continued to be hurt by profit taking as risk aversion waned following the Treasury Department's unveiling of a program that may generate $1 trillion in financing. The yellow metal lost 9.1 dollars to settle at $941.8/oz. Plans to buy illiquid assets using up to $100 billion in funds from the Troubled Asset Relief Program and capital from private investors pushed the stock markets sharply higher. Gold often moves inversely to equities and is sold when other investments perform well and market worries ease. If the plan succeeds in relieving banks of toxic assets gold is likely to fall but if the plan is considered unsuccessful gold is likely to rally further.
The short term trend is sideways while the medium and long term trends are bullish.
Support: $935.75 (yesterday's low) Resistance: $974.17 (high of 17/02/09)
Support: $931.50 (low of 26/02/09) Resistance: $967.00 (high of 20/03/09)
Support: $929.60 (low of 06/03/09) Resistance: $957.50 (yesterday's high)
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