Weekly Report 19/12 – 23/ 12/ 2011
Looking at where the metal has gone after breaching the initial support -turned into resistance- at 61.8% of CD which represents second technical target of our previous explained bearish harmonic AB=CD pattern, proves that the extended technical targets of the harmonic pattern are still in progress. Having said so, we recommend reviewing your own weekly chart to see the clear long black candlestick pattern that could beat the oversold sign appearing on daily Stochastic. To summarize this, gold may achieve some kind of correction before resuming the downside rally, softly targeting the second extended technical target of AB=CD at 127.2% of CD leg after clearing the first extended objective at 76.4% earlier.
The trading range for this week is among the key support at 1475.00 and key resistance now at 1665.00.
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 | 1559.00 | 1549.00 | 1533.00 | 1520.00 |
| Resistance | 1600.00 | 1615.00 | 1628.00 | 1635.00 | 1650.00 |
| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1610.00 targeting 1533.00 and stop loss above 1655.00 might be appropriate. | ||||
Silver
Weekly Report 19/12 – 23/ 12/ 2011
The level of 29.70, which represents 61.8% Fibonacci correction, is affecting the metal negatively as shown above on the chart. Stochastic failed to turn positive and is currently providing a negative crossover. This proves that the effect of the rising wedge pattern –bearish technical structure- remains valid and is affecting the metal significantly. Therefore, we expect a downside movement this week, testing areas around 28.10 again, as a breach of this level could send the metal towards 27.15.
The trading range for this week is among the key support at 26.00 and key resistance now at 32.95.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
**New York Candlesticks**
| Support | 28.60 | 28.10 | 27.60 | 27.15 | 26.90 |
| Resistance | 29.15 | 29.70 | 30.30 | 30.85 | 31.25 |
| Recommendation | Based on the charts and explanations above, our opinion is selling silver around 29.15, and take profit in stages at (28.10 and 27.15) and stop loss with 4-hour closing above 30.30 might be appropriate | ||||
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