Weekly Report 16/05 -20/ 05/ 2011
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The provided four hour graph shows the probability that the fifth wave is still in progress. Stability above the support line along with the suggested Elliott count are two reasons that make us propose a bullish trend during this week. Two conditions are required to confirm this bullishness as follows:
Stabilizing above 1462.00 with a daily closing to make the Elliott count valid.
Stabilizing above 1445.00 with a daily closing to make the major uptrend valid.
The trading range for this week is among the key support at 1420.00 and key resistance now at 1575.00.
The general trend over the short term basis is to the upsidetargeting1600.00 per ounce as far as areas of 1430.00 remain intact with weekly closing.
Previous ReportSupport1480.001477.001468.001460.001455.00Resistance1505.001513.001523.001530.001537.00RecommendationBased on the charts and explanations above our opinion is, buying gold around 1488.00 gradually targeting 1523.00,1537.00 and 1550.00, while the stop loss is a daily closing below 1460.00 might be appropriate.