Weekly Report 15-19 / 03 / 2010

The mixture between the harmonic and classical studies proved that, gold is moving inside a bearish channel which manages the descending movements of the bearish harmonic butterfly as seen on the weekly chart. Actually, gold has activated our bearish speculation during the past week, closing below 1115.00 zones and thus a bearish engulfing candlestick pattern was created. Henceforth, further bearishness could be seen during this week.

The trading range for this week is among the key support at 1044.00 and key resistance now at 1162.00.

The general trend over the short term basis is to the downside, targeting $ 1025.00 per ounce as far as areas between 1225.00 and 1249.00 remain intact.

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RecommendationBased on the charts and explanations above our opinion is, selling gold from 1109.00 targeting 1065.00 and stop loss above 1144.00 might be appropriate.