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.

Previous Report

RecommendationBased 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.