Weekly Report 09/01 – 13/01/ 2012
In line with our previous technical comment, Stochastic over daily studies has overlapped negatively activating the suggested bearish harmonic structure on the indicator. Having a look at the harmonic formation-colored in grey- will reveal that the CD leg of the potential Crab pattern is still under formation but we need to witness a sustained breakout below the pivotal support of 1603.00 to make sure that the upside move from 1522.00 is just a normal recovery for the bearishness started at 1800.00 zones. Of note, a break below 1603.00 will activate a clear negative sign on Vortex.
The trading range for this week is among the key support at 1522.00 and key resistance now at 1673.00.
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 | 1603.00 | 1582.00 | 1559.00 | 1549.00 | 1533.00 |
| Resistance | 1628.00 | 1635.00 | 1653.00 | 1665.00 | 1673.00 |
| Recommendation | Based on the charts and explanations above our opinion is, selling gold below 1603.00 targeting 1533.00 and stop loss above 1650.00 might be appropriate. | ||||
Silver
Weekly Report 09/01 – 13/01/ 2012
The bullishness stopped and the metal retreated to areas below 29.05, which represents 38.2% Fibonacci correction of the CD leg of the bullish Bat harmonic pattern. In fact, we cannot negate the Bat harmonic pattern, where any trading above 27.10 supports the return of the upside move, while consolidation with 4-hour closing above 29.05 could trigger another bullish attempt. Therefore, we remain positive this week, yet heavy fluctuations and downside correction could occur.
The trading range for this week is among the key support at 23.40 and key resistance now at 31.25.
The short-term trend is to the downside targeting 20.05 as far as areas of 38.00 remain intact.
**New York Candlesticks**
| Support | 28.60 | 28.10 | 27.60 | 27.10 | 26.90 |
| Resistance | 29.05 | 29.70 | 30.30 | 30.85 | 31.25 |
| Recommendation | Based on the charts and explanations above, our opinion is buying silver above 27.60, and take profit in stages at (28.10 and 29.05) and stop loss with 4-hour closing below 26.05 might be appropriate | ||||
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