Weekly Report
Gold declined to breach 23.6% Fibonacci correction at 1653.00 and continues to trade with a downside bias approaching a retest of the descending channel’s resistance that was previously breached and now turned into support at 1642.00. This decline accompanies momentum indicators entering oversold areas which offer the possibility for an upside rebound from the mentioned areas. Therefore, we prefer to stay neutral for now and observe trading around 1642.00 as a breach of which will revive the bearishness and halts the upside correction that started from the recorded trough at 1612.00.
The trading range for this week is among the key support at 1612.00 and key resistance now at 1680.00.
The short-term trend is to the upside targeting 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.
| Support | 1642.00 | 1638.00 | 1635.00 | 1628.00 | 1622.00 |
| Resistance | 1653.00 | 1662.00 | 1666.00 | 1670.00 | 1680.00 |
| Recommendation | Based on the charts and explanations above we recommend observing trading today awaiting more confirmations | ||||
Silver
Weekly Report
The negativity returned to control silver’s trading and now hovering around the support for the sideways range at 31.20. With stability above this level the upside move suggested earlier remains valid; we should note that a breach of the mentioned areas will be a very negative signal and will push the metal initially towards 30.00 then 28.85, while on the other end a breach of 31.80 will help silver extend the upside move towards the first main target at 33.15.
The trading range for this week is among the key support at 30.00 and key resistance now at 34.00.
The short-term trend is to the downside targeting 20.05 as far as areas of 38.00 remain intact with weekly closing.
*The chart above is based on NY time*
| Support | 31.20 | 31.00 | 30.85 | 30.45 | 30.00 |
| Resistance | 31.80 | 32.00 | 32.60 | 32.85 | 33.00 |
| Recommendation | Based on the charts and explanations above our opinion is buying silver around 31.20 and take profit in stages at 32.00, 33.15 and stop loss with closing below 30.40 might be appropriate this week | ||||
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