Weekly Report 27/12 -31/ 12/ 2010
The metal is still moving below the previous broken uptrend line, which carried the movements from 1156.00 to the recorded historical peak around1430.00 as seen on the provided daily chart. Thus, we still depend on this breakout to suggest potential bearish actions during this week. Breaching 23.6% Fibonacci retracement of the aforementioned uptrend will be another negative indication. Additionally, Stochastic is still negative, supporting this anticipated scenario but we should be careful since the lack of liquidity during this week might cause volatile movements.
The trading range for this week is among the key support at 1291.00 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.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold around 1395.00 targeting 1333.00.00 and stop loss with a daily closing above 1432.00 might be appropriate.|