Review:

(05/Mar/2007 - 09/Mar/2007)
The week opened at 643.3, week high 658, week low at 632.3 and closed at 649.9. The gold is slightly stand below 650. Gold price was slump from 4 months high 689 to 632.3 because of investors short position from carry trade since Yen rised. World stock markets were fall from the highest point and investor withdraw money out from gold market to compensate on the loss in stock market. Investors and jewellers started buying from low near 632 and support the gold reached 2 weeks high at 658. As US data released on friday strengthen USD, gold fallen and closed at 649.9

Technical:

Daily Chart

On the daily chart SMA 10 is crossed lower than SMA 20 and on top of SMA 50 which have a great chance the price would bounce back on top of SMA 20. From stochastic, RSI and MACD are on low level. MACD and stochastic are reversal in this stage, and note that stochastic is a prediction indicator and always run faster than MACD. There is a support on 648, and major support on 642. Resistance is on 653 and major resistance is on 658.

Hourly Chart

From the hourly chart it was acurately stated that the resistance is on 658, and the fell to 649. SMA 10 is on top of SMA 20. RSI, stochastic and MACD are on a low range. Those indicators gives signal that is a good timing to buy gold.

Market News and Data:

Short position of carry trade has relief since YEN fall back above 118. However, it is still need to be caution from speech of Japan goverment and bank. USD have strengthen from the market data released on last friday. USD technically has rised above resistance and then pull back under the slope and would predict USD slowly goes down.

Crude oil fall near 60 as it cannot climb above the resistance on 62.5. With the supply crisis in Iran, and ulitilisation of US refineries. The price should be moving from 58 - 62

Strategy:
Long position: 649, 642
Stop loss: 647, 639

Short position: 658, 653
Stop loss: 660, 656