Weekly Report 07/11 -11/ 11/ 2011
Areas between 1772.00 and 1785.00 levels represent the potential reversal zone of the bearish AB=CD harmonic pattern. Stochastic is within overbought areas and is expected to turn negative. This harmonic pattern, in case was confirmed; drive us to expect a downside movement this week. However, consolidation above 1785.00 could trigger a bullish wave towards 1837.00 and 1876.00 levels.
The trading range for this week is among the key support at 1660.00 and key resistance now at 1876.00.
The short-term trend is to the upside targeting 1945.00 as far as areas of 1475.00 remain intact.
|Recommendation||Based on the charts and explanations above, we recommend selling gold around 1785.00, targeting 1705.00 and stop loss above 1830.00 might be appropriate.|