Weekly Report 12/12 -16/ 12/ 2011

Respecting our previous week analysis flawlessly, the metal has dropped violently breaching through the important support- turned into resistance-at 1703.00 as seen on the provided four-hour chart. Stochastic reflects clear negative sign despite approaching the oversold zones and this is a sign that the negative pressure is very high for the time being. Furthermore, SMA 20 and SMA 50 are covering the collapse occurred during the Asian session as well. Hence,additional setbacks could be seen during this week, chiefly targeting 1650.00 zones, where a break of which may bring more selling interests towards the full correctional level of the wave from 1603.00 to 1802.00.

The trading range for this week is among the key support at 1602.00 and key resistance now at 1785.00.

The general trend over the short term basis is to the upside, targeting $ 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.

Previous Report

 
Support1673.001665.001650.001642.001635.00
 
Resistance1703.001715.001728.001740.001755.00
 
RecommendationBased on the charts and explanations above our opinion is, selling gold around 1703.00 targeting 1650.00 and stop loss above 1740.00 might be appropriate.