Gold intraday trading level analysis for 4 July 2011, we recommend to trade short in Gold below 1499 level for targets as 1492 and 1487. A protective stop loss order should be placed above the 1503 level.
Reason to trade short on Gold : Looking at the charts we see that the price action has broken below the bullish channel lower boundary and is now making the series of lower low and lower highs suggesting the strong downtrend, 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 daily chart. Trend is most likely to be bearish today.
Near term trend is now consolidation and medium term trend will still remain bullish.