Gold intraday trading level analysis for 1 July 2011, we recommend to trade short in Gold below 1507 level for targets as 1500 and 1496. A protective stop loss order should be placed above the 1509 level.
Why to trade short on Gold : Looking at the charts we see that the price action has broken below the bullish channel lower boundary, So we see further consolidation before any up move from here. This makes the short term trend to consolidation and we are bullish for the medium term. Short trade is supported by the technical analysis and recommends us to trade short for today. Studying technical indicators like RSI, Stochastic, and MACD suggest that the short positions are valid and are in favor of trade on 4 hour chart. Trend is most likely to be bearish today.