Weekly Report 23/5 -27/ 05/ 2011
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Our previous suggested Elliott count is still valid as it proved its efficiency with the sharp incline on Friday. The fifth wave has started with stability above the support line at 1486.00. Stochastic reflects overbought case and that may cause some kind of fluctuation but breaching through 1523.00 will assist the metal to incline more and ignore this negative sign.
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.
Eye On GoldSupport1500.001494.001486.001480.001474.00Resistance1513.001523.001530.001537.001545.00RecommendationBased on the charts and explanations above our opinion is, buying gold around 1500.00 gradually targeting 1523.00,1537.00 and 1556.00, while the stop loss is a daily closing below 1474.00 might be appropriate.