Weekly Report 17-21/ 10/ 2011

We have seen the metal consolidating below the pivotal previously breached support which turns into resistance now around 33.00; in fact, the area is a cluster of resistances among 32.30 and 33.50. The consolidation may be taking the shape of an ascending triangle, where the pivotal levels we should watch are 33.50 to the upside and 31.25 to the downside, any trading within this range hints that the indecisive stance remains dominant; thus we will stay aside awaiting a breach of the aforementioned levels for now. Mentioning that over the longer time horizon, the metal is trading within the main descending channel shown on the image.

The trading range for week is among the key support at 28.40 and key resistance now at 35.00.

The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.

Previous Report

 
Support31.7031.4531.2530.7530.50
 
Resistance32.3032.5032.7533.0033.40
 
RecommendationBased on the charts and explanations above, we recommend staying aside awaiting more confirmations.