Weekly Report 16/01 – 20/01/ 2012
The solid resistance around 1665.00 has forced the metal to decline activating an obvious negative crossover on Stochastic as seen on the provided daily chart. Henceforth, the CD leg of the suggested harmonic Bat pattern is still valid as far as B point holds. A break of 1628.00 will confirm the bearishness proposed for this week while clearings 1603.00 will accelerate declines and will change the positivity of Vortex indicator.
The trading range for this week is among the key support at 1559.00 and key resistance now at 1703.00.
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 | 1628.00 | 1607.00 | 1596.00 | 1582.00 | 1573.00 |
| Resistance | 1650.00 | 1665.00 | 1673.00 | 1687.00 | 1695.00 |
| Recommendation | Based on the charts and explanations above our opinion is, selling gold below 1628.00 targeting 1573.00 and stop loss above 1665.00 might be appropriate. | ||||
Silver
Weekly Report 16/01 – 20/01/ 2012
Stability above 29.05 suggests that silver could provide more attempts to reach the second target of the bullish Bat harmonic pattern, where this target represents 61.8% Fibonacci correctional level at 30.80. In fact, Stochastic is negative and silver is stable below the simple moving average 50 at 30, which could trigger heavy fluctuations and maybe downside corrections. But, RSI and trading above 38.2% Fibonacci correctional level of the CD leg of the bullish Bat harmonic pattern are sufficient for our positive outlook to remain valid this week.
The trading range for this week is among the key support at 24.75 and key resistance now at 32.10.
The short-term trend is to the downside with steady weekly closing below 38.00 targeting 20.05.
**New York Candlesticks**
| Support | 29.05 | 28.60 | 28.10 | 27.60 | 27.10 |
| Resistance | 30.30 | 30.85 | 31.25 | 31.80 | 32.10 |
| Recommendation | Based on the charts and explanations above, our opinion is buying silver above 29.05, and take profit in stages at (30.80 and 32.10) and stop loss with 4-hour closing below 28.10 might be appropriate | ||||
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