Weekly Report 13/06 -17/ 06/ 2011
In line with our previous suggested Gartley pattern, the metal moved downwards although the pattern is not ideal. Now, RSI 14 is moving below 50.00; while trading below 1549.00 with a daily closing keeps the PRZ of the pattern valid. The bearishness is in favor and technical targetsare seenat 1522.00, followed by 1502.00. If 1522.00 holds, Gartley will be limited and Bat will be activated via touching the second PRZ.
The trading range for this week is among the key support at 1494.00 and key resistance now at 1581.00.
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.
|Recommendation||Based on the charts and explanations above our opinion is, selling gold around 1537.00 gradually targeting 1522.00 and1513.00 while the stop loss is a daily closing above 1549.00 might be appropriate.|