Weekly Report 27/06 -01/ 07/ 2011

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Gold slipped violently towards 61.8% of the suggested harmonic structure. This harmonic formation could be Gartley pattern and also very close to be Bat but it couldn't reach 1563.00 to confirm the Bat and couldn't stabilize below 1549.00 to confirm the first shape. Actually, this harmonic formation was efficient enough to push the metal lower below 61.8% at 1505.00. Thus, the path is cleared towards 76.4% of CD leg at 1492.00 which will define the direction for this week. Momentum indicators reflect clear oversold signs contradicting with the bearish tendency and therefore, we prefer staying aside until we see how the metal will behave between 1505.00 and 1492.00.

The trading range for this week is among the key support at1462.00 and key resistance now at 1549.00.

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

Support1492.001488.001480.001477.001474.00
Resistance1505.001513.001525.001532.001537.00
RecommendationBased on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move.