Weekly Report: (30 Jan-3 Feb)

We recognize a double harmonic structure over the daily chart, where this structure contains the formation of a Bat harmonic pattern, which started at X1 point, and the formation of a Butterfly harmonic pattern that started at X2 point. Despite the fact that both patterns are not ideal, but we can see on the interval that this bullish structure was able to push the metal towards 88.6% Fibonacci correction of the CD leg at 1735.00, where this barrier could separate between testing the top of (C) point and retesting areas around 1711.40 as ADX didn't confirm the end of the bullish wave despite the weakness seen on the indicator. Therefore, we remain neutral in our weekly report and recommend reviewing our next reports for more confirmations regarding the metal's next move.

The trading range for this week is among the key support at 1670.00and key resistance now at 1772.00.

The short-term trend is to the upside with steady weekly closing above 1475.00 targeting 1945.00.

Previous Report

 

Support
1720.00
1710.00
1702.00
1687.00
1670.00

 

Resistance
1735.00
1744.00
1756.00
1763.00
1772.00

 

Recommendation
Based on the charts and explanations above, we remain neutral due to the high risk associated to our expectations