Weekly Report 21/11 – 25/ 11/ 2011
Looking at Friday's closing, we will notice that the metal has closed negatively below 38.2% Fibonacci retracement of the CD leg for our accurate bearish harmonic AB=CD pattern. Hence, the path is clear for reaching the second technical objective of the pattern at 61.8% followed by the first extended technical target at 76.4% level. Actually, the recently drawn negative sign on AROON indicator argues us to say that 76% will be reached. Ultimately, a break of 1703.00 will add further confirmation for our proposed harmonic scenario but on the other side, areas of 1785.00 should hold to protect it.
The trading range for this week is among the key support at 1627.00 and key resistance now at 1800.00.
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 | 1715.00 | 1695.00 | 1687.00 | 1673.00 | 1650.00 |
| Resistance | 1732.00 | 1755.00 | 1765.00 | 1773.00 | 1785.00 |
| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1728.00 targeting 1650.00 and stop loss above 1785.00 might be appropriate. | ||||
Silver
Weekly Report 21/11 – 25/ 11/ 2011
Silver confirmed the breach of the ascending support level of the rising wedge, and then the metal declined sharply to settle below 38.2% Fibonacci correction at 32.95 and also below the Simple Moving Average 50 around 32.50 with the start of this week. These factors suggest that the downside movement could extend towards 30.30 basically. Therefore, we expect a downside movement to control the metal’s movement during this week.
The trading range for this week is among the key support at 29.15 and key resistance now at 34.00.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 32.50 | 32.00 | 31.45 | 31.25 | 30.75 |
| Resistance | 32.95 | 33.40 | 33.75 | 34.00 | 34.60 |
| Recommendation | Based on the charts and explanations above, our opinion selling silver below 32.95 and take profit in stages at (31.45 and 30.30) and stop loss with 4-hour closing above 34.00 might be appropriate. | ||||
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