Weekly Report 09/05 -13/ 05/ 2011

Click on the image for a larger view

The metal succeeded in moving higher according to Friday's scenario where it touched the first and second technical targets after achieving the previous suggested bearishness during the previous week. These movements make us trust our proposed Elliott scenario more but we are not sure that the internal count-red arrow- is correct enough. Anyway, we still see chances for achieving bullish movementsthat will be proven with stability above 1523.00 zones.

The trading range for this week is among the key support at1445.00 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 with weekly closing.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, buying gold around 1594.00 gradually targeting 1523.00,1537.00 and 1550.00, while the stop loss is a daily closing below 1460.00 might be appropriate.