Weekly Report13/12 -17/ 12/ 2010

Gold is attempting to breach the support line from A to C for the harmonic structure as seen on the provided chart. We need a four hour closing below this support to activate more bearishness. The negative effect of the bearish harmonic AB=CD pattern is still in favor since trading is still below 1400.00-1430.00 zones. Henceforth, we will be waiting for a four hour closing below 1380.00 to make sure that the bearishness will continue during this week.

The trading range for this week is among the key support at1291.00 and key resistance now at 1452.00.

The general trend over the short term basis is to the downside, targeting $ 1208.00 per ounce as far as areas of 1485.00 remain intact.

Previous Report

Support1380.001370.001358.001350.001330.00
Resistance1395.001400.001406.001413.001420.00
RecommendationBased on the charts and explanations above our opinion is, selling gold with a four hour closing below 1380.00 targeting 1330.00 and stop loss with a four hour closing above 1406.00 might be appropriate.