Weekly Report 18/07 -22/ 07/ 2011

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The provided daily graph shows that the metal IM wave that started at 680.00 zones is still in progress, where we believe that the internal fourth of the extended fifth wave has been placed at 1476.00 areas. Thus;the bullishness may continue during this week, mainly targeting 1627.00 zones, followed by the psychological level of 1650.00, subsequently 1694.00 areas over upcoming sessions where 161.8% Fibonacci projection level of the internal third wave exists. The IM -impulsive- wave is supported by the positive sign on AROON and stability above SMA 50 -trend indicators- while Stochastic may cause a slight correction before resuming the upside rally.

The trading range for this week is among the key support at 1529.00 and key resistance now at 1661.00.

The general trend over the short term basis is to the upsidetargeting 1694.00 per ounce as far as areas of 1430.00 remain intact with weekly closing.

Previous Report

Support1589.001574.001562.001558.001552.00
Resistance1600.001607.001625.001635.001650.00
RecommendationBased on the charts and explanations above our opinion is, buying gold around 1589.00 targeting 1650.00 and stop loss below 1558.00 might be appropriate.