Weekly Report 25 -29 / 01 / 2010

The harmonic picture came back into focus as gold has achieved continuous descending actions during the past week, opening the door up for additional bearishness during the coming period. Coming below SMA 50- currently valued at 1114.00- is able to push the metal to retarget 1074.00 zones. A break of which will ease the path towards 1046.00 zones. Therefore our outlook is still bearish supported by the bearish harmonic AB=CD pattern, the negative weekly candlestick pattern-secondary image- and AROON bearish sign.

The trading range for this week is among the key support at 1032.00 and key resistance now at 1162.00.

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

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling gold from 1107.00 targeting 1055.00 and stop loss above 1145.00 might be appropriate.