Weekly Report 12/12 – 16/ 12/ 2011
Respecting our previous week analysis flawlessly, the metal has dropped violently breaching through the important support -turned into resistance- at 1703.00 as seen on the provided four-hour chart. Stochastic reflects clear negative sign despite approaching oversold zones and this is a sign that the negative pressure is very high for the time being. Furthermore, SMA 20 and SMA 50 are covering the collapse that occurred during the Asian session as well. Hence, additional setbacks could be seen during this week, chiefly targeting 1650.00 zones, where a break of which may bring more selling interests towards the full correctional level of the wave from 1603.00 to 1802.00.
The trading range for this week is among the key support at 1602.00 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 | 1665.00 | 1650.00 | 1642.00 | 1635.00 |
| Resistance | 1703.00 | 1715.00 | 1728.00 | 1740.00 | 1755.00 |
| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1703.00 targeting 1650.00 and stop loss above 1740.00 might be appropriate. | ||||
Silver
Weekly Report 12/12 – 16/ 12/ 2011
Sooner or later, stability below the resistance level at 32.95 should trigger another bearish wave, affected by the rising wedge pattern –bearish technical structure- as shown above in red. The general trend is bearish, where the descending channel seen over medium-term basis contains all the trading till now. We expect a downside movement this week, while a daily closing below 31.10 should confirm our outlook and activate the bearishness.
The trading range for this week is among the key support at 29.15 and key resistance now at 35.10.
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 | 33.50 | 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 33.05 might be appropriate | ||||
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