Weekly Report 17–21/ 10/ 2011
Stochastic is still attempting to give the required bearish sign over daily studies where the entire correctional movements from 1533.00 to the current levels are still trapped below the neckline areas of the double top formation. The classical double top structure hasn't reached its scientific technical target yet, warning a new downside move may start sooner, noting that the possibility of drawing a rising wedge pattern increased. A break of 1702.00 will indicate that the bearish effect of the double top pattern has been limited earlier at 1533.00, while breaching through 1653.00 will accelerate the awaited negative scenario.
The trading range for this week is among the key support at 1575.00 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 | 1673.00 | 1653.00 | 1635.00 | 1627.00 | 1615.00 |
| Resistance | 1687.00 | 1702.00 | 1715.00 | 1728.00 | 1735.00 |
| Recommendation | Based on the charts and explanations above our opinion is, selling gold with a breakout below 1653.00 targeting 1575.00 and stop loss above 1702.00 might be appropriate. | ||||
Silver
Weekly Report 17–21/ 10/ 2011
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We have seen the metal consolidating below the pivotal previously breached support which turns into resistance now around 33.00; in fact, the area is a cluster of resistances among 32.30 and 33.50. The consolidation may be taking the shape of an ascending triangle, where the pivotal levels we should watch are 33.50 to the upside and 31.25 to the downside, any trading within this range hints that the indecisive stance remains dominant; thus we will stay aside awaiting a breach of the aforementioned levels for now. Mentioning that over the longer time horizon, the metal is trading within the main descending channel shown on the image.
The trading range for week is among the key support at 28.40 and key resistance now at 35.00.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 31.70 | 31.45 | 31.25 | 30.75 | 30.50 |
| Resistance | 32.30 | 32.50 | 32.75 | 33.00 | 33.40 |
| Recommendation | Based on the charts and explanations above, we recommend staying aside awaiting more confirmations. | ||||
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