Gold Weekly Technical Report 3-7/12/2012

Following the break below the rising wedge; gold dipped to touch 1705.00 key support level, before finding some grounds, the metal has also neared the main ascending trend line for the entire latest bullish wave, which continues to protect the short term bullish trend. Accordingly , we look for an upside rebound this week as we believe the effect of the wedge pattern could stop at the key aforementioned trend line at 1700.00. Otherwise, if we manage to break below the aforementioned support, a push towards the latest swing low at 1670.00 will be likely.

The trading range for this week is expected among the key support at 1695.00 and key resistance now at 1753.00

The short term trend is to the upside targeting 1945.00 per ounce as far as areas of 1520.00 remain intact with a weekly closing. 

Support 1715.00 1705.00 1698.00 1690.00 1685.00

Resistance 1722.00 1730.00 1735.00 1738.00 1745.00

Recommendation Based on the charts and explanations above, we recommend buying gold around 1705.00 targeting 1730.00,1738.00 and 1750.00. Stop loss below 1695.00