Weekly Report 06/06 -10/ 06/ 2011

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Now, the previous discussed Elliott count came back into focus where the internal third wave seen on the image could be completed between 1560.00 and 1581.00 areas. We see signs of a negative divergence on RSI, while Stochastic is negative and thus, the aforesaid wave might have been completed already. To recap, we might witness a bullish wave but a slant correction might start. Breaching through 1581.00 will bring more bullishness towards 1600.00 areas.

The trading range for this week is among the key support at 1500.00 and key resistance now at 1571.00.

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 Report

Support1540.001532.001523.001513.001505.00
Resistance1549.001556.001560.001564.001575.00
RecommendationBased on the charts and explanations above our opinion is, buying gold around 1540.00 gradually targeting 1556.00,1560.00 and 1581.00, while the stop loss is a daily closing below 1523.00 might be appropriate. This recommendation will be canceled out if the second and third technical targets are reached before the entry point is touched.