Weekly Report 06/12 -10/ 12/ 2010

During the previous report we defined 1395.00 to be the decisive point, where the bearishness turned into bullishness once it was breached. Additionally, the harmonic formation succeeded in describing the movements as well. Currently, gold is facing very sensitive areas represent potential reversal zones, where 200% of BC leg exists. In the interim, they represent 88.6% Fibonacci retracement levels of XA leg, while the historical high approaches. We need a confirmation that D1 will prevent it from showing additional bullish movements towards 261.8% of BC at 1432.00, or reaching D 2. Consequently, the neutrality will be in favor to define together the sort of the pattern according to its reversal areas.

The trading range for this week is among the key support at 1350.00 and key resistance now at 1485.00.

The general trend over the short term basis is to the downside, targeting $ 1208.00 per ounce as far as areas of 1465.00 remain intact.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move.