Dear trader, Merry Christmas & Happy New Year! This is the yearly graph of gold where we can notice the violent decline from all-time high around 1920.00 zones to the current levels below the psychological levels of 1600.00 created a very long upper shadow of around 330 dollars on our chart.
We all know that there are about 48 hours to witness the closing of 2011 candlestick, but we also can see how trading was very thin since the opening of this week.
Click on the image for a larger view
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Unless gold achieves a yearly closing above 1645.00, then we will get the longest upper shadow on the chart since 1980.
Despite the low liquidity conditions seen during the last week of the year which may cause fast and sharp movements until Friday, but we do believe that closing will be seen below 1645.00.
Although volume was very high during 2011 as same as it was during the past five years, but the metal declined designating more bearishness during 2012.
In 1981, the metal slipped sharply affected by the long upper shadow of 1980's candlestick and the question now; shall we witness a similar case in 2012? I think so.
Finally, don't forget to check the yearly closing, even from you mobile phone while you celebrate on Saturday!
For more details about 2012 technical outlook for gold, click here.
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May Santa Claus bring you a bag of pips!
Good luck
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