Weekly Report 11 -15 / 01 / 2010

Gold has closed the previous week positively, forming a bullish candlestick formation, opening the door for additional upside movements. The mixture between harmonic studies and Elliott waves offers a potential completion for this bullishness around 1249.00. Areas of 1162.00 should be breached to confirm this bullish overview, while the metal is to face other cluster resistances around 1180.00 zones and 1200.00.Momentum indicator's negative overview might cause fluctuated actions.

The trading range forthis weekis among the key support at 1045.00 and key resistance now at 1249.00.

The general trend is to the upside as far as 865.00 remains intact with targets at 1249.00.

RecommendationBased on the charts and explanations above our opinion is, buying gold with a breakout above 1162.00 targeting 1200.00 and stop loss below 1144.00 might be appropriate.