Weekly Report 02/01 -06/01/ 2012

Gold continued trading below the pivotal resistance areas around 1603.00 which represent C point of our major bearish harmonic AB=CD pattern as seen on the provided daily graph. Stability below this aforementioned level designates that the metal may continue achieving more bearishness to reach more extended technical targets of this harmonic formation. But, we can notice the positive sign appearing on Stochastic that may cause some kind of fluctuation before resuming the downside journey. Furthermore, we can see the probability of forming the last leg of a potential Crab pattern targeting areas below 1500.00. A break below 1552.00-1549.00 will confirm our suggested bearish scenario. Conversely, areas of 1603.00 should hold to protect the downside anticipations.

The trading range for this week is among the key support at 1475.00 and key resistance now at 1628.00.

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

 
Support1550.001533.001522.001500.001480.00
 
Resistance1573.001587.001595.001603.001628.00
 
RecommendationBased on the charts and explanations above our opinion is, selling gold below 1552.00 targeting 1480.00 and stop loss above 1604.00 might be appropriate.