Seven Days Ahead - Professional trading guides and recommendations in the world's markets

WEEKLY CHART - CONTINUATION:

The 38.2% recovery level has proved a tough barrier to push through, and remains first key resistance on this long term chart.

The multi-month consolidation is now seeing more of a sagging in price but this should ultimately be temporary ahead of a later (postponed for now) break above that 38.2%.

DAILY CHART - DEC-09:

This week's break below rising support around 13.00 confirms that s/term bears are in control.

We think that s/term rallies will prove temporary/corrective ahead of further weakness.

Resistance-wise first note the prior Oct lows around 14.00 and 61.8% bounce level at 14.06.

Then the 76.4% level at 14.43 and falling resistance line just above.

The 12.00 area is something of a minimum target (note the small bear channel base just below here). But also keep in mind an interesting Fibo projection at 11.60, currently coinciding with a larger bear channel base - better support could be seen here.