Weekly Report 20/12 -24/ 12/ 2010
Trading continued stabilizing below the previous broken uptrend line as seen on the provided image. Thus, the harmonic possibility of the butterfly pattern still exists. Stochastic is showing overbought sign, while RSI is negative and therefore, the bearishness is still in favor during this week, targeting 61.8% of CD leg at 28.05. Note that, areas of 29.85 should hold and we shouldn't witness a four hour closing above it to keep this scenario valid.
The trading range for this week is among the key support at 27.25and key resistance now at 31.20.
The general trend over the short term basis is to the downside targeting $ 22.95 per ounce as far as areas of 29.80 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling around 29.55 targeting 27.40 and stop loss with a daily closing above 30.00 might be appropriate.|