Weekly Report 28/11 – 02/ 12/ 2011
The metal has inclined during the Asian session affected by the oversold sign on Stochastic where it entered the resistance areas of 50% Fibonacci of the upside rally from 1603.00 to 1802.00 as seen on the provided four-hour graph. The pivotal weekly resistance levels around 1737.00-1740.00 should hold to protect the expected bearishness. Our proposed negative scenario is based on the negative pressure of SMA 50-red- and RSI indicator which is gradually entering overbought areas. Follow us in the midday report as we will introduce an intraday harmonic possibility.
The trading range for this week is among the key support at 1627.00 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 | 1698.00 | 1687.00 | 1673.00 | 1665.00 | 1650.00 |
| Resistance | 1715.00 | 1728.00 | 1735.00 | 1745.00 | 1756.00 |
| Recommendation | Based on the charts and explanations above our opinion is, selling gold below1705.00 targeting 1650.00 and stop loss above 1740.00 might be appropriate. | ||||
Silver
Weekly Report 28/11 – 02/ 12/ 2011
Silver rebounded to the upside with the start of this week, but as shown above on the chart, we find the metal is still stable below the simple moving average 50 and also below 38.2% Fibonacci correction at 32.95. The current upside move is only a correction for the metal to gain more negative momentum and then enter another bearish wave. Our expectations remain valid as long as the metal is stable below 38.2% Fibonacci correction.
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.
**New York Candlesticks**
| Support | 31.45 | 31.25 | 30.75 | 30.30 | 29.80 |
| Resistance | 32.10 | 32.95 | 33.40 | 33.75 | 34.00 |
| Recommendation | Based on the charts and explanations above, our opinion is selling silver around 32.10, and take profit in stages at (30.75 and 29.80) and stop loss with 4-hour closing above 33.40 might be appropriate | ||||
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