Weekly Report (June 20-24, 2011)

Gold stabilized above 1522.00 signaling that it settled for the first target of the bearish Gartly Pattern mentioned before. This move signals that the metal is attempting to complete a harmonic Bat pattern at 1562.00-1565.00 per ounce. Therefore, the metal will attempt to move to the upside this week and this upside move depends on 1522.00 and stability below it supports the likelihood for gold to move to the upside while the breach of 1502.00 might negate the upside move.

The trading range for this week is among the key support at 1495.00 and key resistance now at 1581.00.

The short-term trend is to the upside targeting 1600.00 per ounce as far as areas of 1430.00 remain intact.

RecommendationBased on the charts and explanations above our opinion is buying gold around 1523.00 and take profit in stages at 1549.00, 1556.00 and 1564.00 and stop loss with daily closing below 1520.00 might be appropriate this week