Click on the image for a larger view
We have discussed in our previous report that 34.76 level would define the next move and we see how the bearish effect of the harmonic pattern has been limited around it where the second technical objective of the pattern exists. From those levels, the metal bounced after achieving a huge part of this week's expectations. This bounce occurred after retesting the previous broken resistance for the downside channel-turned into support-. The metal stabilized once again above 36.35 which may confirm a bullish wave, but Stochastic reflects overbought case attempting to move downwards. Since the price is below the 36.35 and above 35.60, we will be neutral during the morning session until we make surethat the harmonic structure's effect is over.
The trading range for today is among the key support at 34.35 and key resistance now at 38.00.
The general trend over short term basis is to the downside,targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move.|