DAILY GOLD TREND FOR 20 DEC 2010

In spite of the fact that Friday was a triple witching day
 it held out extremely well over the whole week.
I can remember some expiration weeks when gold and
silver were beaten down over the whole period.
That kind of tendencies was to be seen but partially
these days; the intraday rebounds from the day lows
on Thursday and Friday were pretty convincing.

Considering the drop in prices from the all-time high of
12/07/2010 until the Thursday low the correction by
a five percent doesn’t go beyond the scope of the
 ordinary anyway, but it rather seems to be a
normal correction so far.

But we’ll have to consider the seasonality as well, and a glance
 to last year, to 2009…. The last all-time high in 2009 was
 marked on 12/03, you see. Then a correction through 02/05/2010
 followed. Gold fell from 1227 to the February lows (1044).
That was about a 15%. Well, the price course of last week
has clouded the picture of that correction a little more:

The first two days of next week should give us the information
whether gold will be able to leave the negative influence of
the 3rd double bottem. The 1350 will be reached rapidly if on Monday
or Tuesday the support breaks. In that case it would be
 obvious that the bearish influence of the 3rd double
bottem will reach until the last trading day in 2010.


It’s furthermore apparent that at best we may rather expect a
 classical sideways move for the coming weeks without
being any new highs to be seen any more. The buy targets
thrown up by the setup are 1402 and 1422, less than the 1432.50.

On Friday gold escaped into the 1368 but marking a fake low 1361.
Still the lower limit  is resisting, but the fake low enables gold to
 test again this, to break through it downwards definitely.
If the Thursday low breaks on Monday/Tuesday the first
sell target will be the 1350. I belive  gold should run up on
account of the fake low (an 80% of probability).

Note : It’s important for your trading to consider gold and
silver always parallel, silver being the clock, but new highs in
silver don’t mean automatically new highs in gold as well.
But a weaker silver performance should result in
more weakness in gold. Daily long engagements continue
not being advisable, a long term correction on daily basis is too likely.

MY COUNTS FOR 20 DEC  FOR FEB GOLD

RESISTENCE # 2 ..................... $ 1391.50(MCX Rs 20646)
RESISTENCE # 1...................... $ 1385.00(MCX Rs 20582)
PIVOT ....................................... $ 1373.00(MCX Rs 20486)
SUPPORT # 1............................ $ 1368.00(MCX Rs 20422)
SUPPORT # 2.............................$ 1359.00(MCX Rs 20326)

RECOMMENDATION : CONSIDER TO SELL AT HIGHER LEVEL

RAHUL KUMAR
GOLD Analysist

Comments me : bestech30@gmail.com