Weekly Report 11/07 -15/ 07/ 2011

Gold inclined trading inside the rational levels where the BC leg of our proposed harmonic 5-0 pattern could be completed. This leg should be seen around 100% or 161.8% of AB leg and shouldn't surpass 224% at 1558.00. This leg is followed by a bounce to 50% Fibonacci retracement of BC leg. Thereby, we believe that more upside attempts could be seen but since trading is stable below 1558.00, the bearishness will come back into focus temporarily.

The trading range for this week is among the key support at 1500.00 and key resistance now at 1580.00.

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.

Previous Report

RecommendationBased on the charts and explanations above our opinion is, selling gold around 1500.00 gradually targeting 1532.00and 1523.00, while the stop loss is a four hour closing above 1558.00 might be appropriate.