Gold intraday trading analysis for 17 May 2011, we recommend to trade short in Gold below 1492 level with targets as 1485 and 1478. Stop loss should be placed above 1497 level.
Why to trade short on Gold : Gold was seen huge selling last week, also the strong US dollar was responsible for selling in gold. When we look at charts we see that gold will still continue its selling as it has broke below its rising trend line, indicating consolidation in near term to continue. Daily technical indicators are also in favor of short positions only. Trend is likely to be bearish for today’s trading session. RSI is also badly directed and suggests for short trade only.
Near term trend is now consolidation and medium term trend will still remain bullish.