Weekly Report 25/04 -29/ 04/ 2011
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There is no doubt that the metal is forming an Impulsive wave (IM) after placing the trough of 680.00 as seen on the provided daily graph. Having said so, we should know that the distance of the bigger third -shaded in green- was approximately equal to the bigger first wave and according to Elliott rules, this case always brings an extended fifth wave. Actually, that is what happened since gold started the extended fifth wave at 1043.00 zones. When we look at the internal structure of this bigger fifth wave, we will find out that the internal first and third waves reflected the financial qoute History repeats itself as they were equal. Thus, we are currently witnessing the extensions of the internal fifth wave of the extended bigger fifth. Thereby, the internal third wave inside the aforementioned extensions may visit areas between 1522.00 and 1530.00 before moving downwards to form the internal fourth wave which targets 1470.00 zones before forming the last upside wave.
The trading range for this week is among the key support at 1465.00 and key resistance now at 1589.00.
The general trend over the short term basis is to the upsidetargeting1589.00 per ounce as far as areas of 1430.00 remain intact with weekly closing.
Previous ReportSupport1508.001500.001485.001475.001470.00Resistance1523.001529.001545.001555.001576.00RecommendationBased on the charts and explanations above our opinion is, selling gold around 1520.00 targeting 1471.00 and stop loss above 1545.00 might be appropriate.