Gold Weekly Outlook Feb 13, 2012 – Feb 18, 2012

TECHNICAL ANALYSIS

After breaking the inverse Head & Shoulder neckline (the green trend line) at the level of 27746 on 27^th Jan. 2012 gold price has moved upward and on 9^th Feb. 2012 it made a high of 28511 and still prices are moving in between of small upward moving channel range (blue trend lines), but after touching the channel upper line, we are expecting the price to come down to the level of channel lower line.

GOLD DAILY PRICE CANDLE CHART

Gold prices currently on Monday morning session on MCX are trading well below of 61.8 percent retracement level that is 28322 of December 2011 correction from the high 29433 to the low 26517. RSI also has come down after touching the overbought area twice in the previous week and currently in the range of 50-60, we are expecting to more down during this week.

WEEKLY OUTLOOK (13^th Feb. – 18^th Feb.):- During the week start from 13^th Feb we are expecting gold price to trade in the range of 27800-28300, and over the chart the range 27600-27800 provide lots of support level for the gold price.

RECOMMENDATION:- We would like to recommend sell position with every up move to the target 27870, 27700 with stop loss 28450.

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