Weekly Report 24/01 -28/ 01/ 2011
The metal is normally correcting the collapse of the previous week but Stochastic started to enter overbought areas and RSI was relieved slightly. These technical factors argue that the bearishness may continue to form the CD leg of the harmonic pattern-to the right-, where the extended objectives of the left butterfly pattern exist. Trading should stabilize below 29.05-29.85 to keep this overview valid, whilst remainingbelow 28.30is a confirmed bearish sign.
The trading range for this week is among the key support at26.10 and key resistance now at 29.85.
The general trend over short term basis is to thedownside targeting 23.60 as far as areas of 30.80 remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above our opinion is, selling around 28.30 targeting 26.50 and stop loss with a daily closing above 29.45 might be appropriate.|