Weekly Report 24/01 -28/ 01/ 2011

After the sharp decline last week, we see some positivity appearing with the weekly opening but we are still dominated by the harmonic formation- potential butterfly pattern-. This formation may take the metal towards 1322.00 and may extend towards 1298.00. The provided image explains the Fibonacci symmetry of the pattern; henceforth, the bearishness will be in favor during this week as far as trading remains below 1366.00 with an extended potential resistance at 1395.00.

The trading range for this week is among the key support at 1298.00 and key resistance now at 1395.00.

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

Support1350.001344.001330.001322.001298.00
Resistance1360.001365.001376.001388.001395.00
RecommendationBased on the charts and explanations above our opinion is, selling gold around 1366.00 targeting 1298.00 and stop loss above 1395.00 might be appropriate.