Weekly Report 04/07 -08/ 07/ 2011
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After touching levels around 1477.00, the metal rebounded after being supported around 88.6% Fibonacci retracement of CD leg for the bearish harmonic structure seen above. Stabilizing below 61.8% of the aforesaid leg means that the bearish effect of the pattern is still in progress. Hence, we believe that C point will be retested. To recap, stability below 1505.00 is considered to be a reason for proposing a bearish direction for this week and stability below 1492.00 will confirm these anticipations.
The trading range for this week is among the key support at 1455.00 and key resistance now at 1525.00.
The general trend over the short term basis is to the upside, targeting $ 1600.00 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 1500.00 gradually targeting 1492.00,1488.00 and 1474.00, while the stop loss is a daily closing above 1513.00 might be appropriate.|