Weekly Report 20/12 -24/ 12/ 2010

The metal was trapped within a tight range, trending downwards during the previous week since the liquid started to be very low due to the annual vacations ahead of end of 2010. Classically speaking, gold is presently moving above the support line as seen on the secondary image, whilst a gap was formed. Thus, we look at this price action as a retesting process before resuming the potential downside movements expected during this week.

The trading range for this week is among the key support 1291.00at 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
Resistance1395.001402.001406.001413.001420.00
RecommendationBased on the charts and explanations above our opinion is, selling gold below 1385.00 targeting 1330.00 and stop loss with a four hour closing above 1406.00 might be appropriate.