Weekly Report 26/09 – 30/ 09/ 2011
Our previous proposed Elliott count over four-hour interval has been negated since the metal has collapsed on Friday forcing us to leave the smaller time frames behind us. Now, we will look classically at daily studies, where we can see that Friday's decline has been capable of taking the metal below the neckline of a double top formation. Moreover, gold has closed negatively below SMA 50 since the first week of July, 2011. Moreover, the weekly long black candlestick pattern is seen as a confirmed sign for the classical reversal pattern. Stochastic and Vortex indicators solidify the negative scenario. A break of 1575.00 will ease the path towards the technical target of the pattern at 1475.00.
The trading range for this week is among the key support at 1492.00 and key resistance now at 1785.00.
The general trend over the short term basis is to the upside targeting 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.
| Support | 1575.00 | 1540.00 | 1525.00 | 1490.00 | 1475.00 |
| Resistance | 1610.00 | 1635.00 | 1648.00 | 1673.00 | 1702.00 |
| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1605.00 targeting 1475.00 and stop loss above 1674.00 might be appropriate. | ||||
Silver
Weekly Report 26/09 – 30/ 09/ 2011
The metal declined sharply during the past week affected by the breach of 39.10 and then 38.80, but the downside movement extended towards 38.2% and 50% Fibonacci corrections of the long-term upside wave as shown above. Consolidation below 50% at 29.15 suggests more downside movement towards 61.8% Fibonacci correction around 24.25 and maybe the critical support at 22.40 as shown above.
The trading range for this week is among the key support at 22.50 and key resistance now at 31.20.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 27.15 | 26.10 | 25.55 | 24.95 | 24.25 |
| Resistance | 28.85 | 29.15 | 30.20 | 30.85 | 31.20 |
| Recommendation | Based on the charts and explanations above, we recommend selling silver below 28.85 and take profit in stages at (26.10 and 24.25) and stop loss above 30.20 might be appropriate. | ||||
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