Weekly Report 24/10 -28/ 10/ 2011

The metal is still trading sideways between 29.10 and 33.25, but with a closer look, we find the pair is also trading sideways inside the triangle formation between the support at 30.10 and the resistance at 32.80. Furthermore, the Moving Average 50 as shown on the hourly interval (New York Candlesticks) represents a resistance level, while Stochastic is within overbought areas, which support the bearishness. But on the other hand, the Relative Strength Index is positive and breached the 50-point level, while we recognize an ascending channel over hourly basis, where these signs support the bullishness. Therefore, according to the technical conflict we remain neutral in our weekly report.

The trading range for this week is among the key support at 28.40 and key resistance now at 33.70.

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

Previous Report

Support31.4531.2530.7530.1029.15
Resistance32.0032.3032.5030.8033.25
RecommendationBased on the charts and explanations above, we remain neutral today, awaiting more confirmation.