Weekly Report 02/05 -06/ 05/ 2011
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Gold succeeded in reaching all of our previous suggested technical targets after touching 1556.00 zones. Now, it started to move lower once more below 1556.00 and that may confirm our proposed Elliott scenario which is seen on the provided chart. We will depend on this count during this week, where the fourth wave is in progress within the allover IM structure. We know that the fourth wave is a bearish wave, while momentum indicators are trending downwards. Thereby, the bearishness might dominate the movements during this week.
The trading range for this week is among the key support at 1474.00 and key resistance now at 1600.00.
The general trend over the short term basis is to the upside, targeting $ 1600.00 per ounce as far as areas of 1430.00 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold around 1550.00 gradually targeting 1537.00,1523.00 and 1513.00, while the stop loss is a daily closing above 1580.00 might be appropriate.|