The bulls
had dominated since the commencement of the trading week for the precious metal
reaching a weekly high of $1191.39 per ounce except for the last trading
session 15/10/2015 where profit taking had seen a minor correction on the
intra-day trading ending a little negative (Bearish Doji candle formation).
Technical analysis profile:
The breackout
in the symmetric triangle and a final break above key technical resistance zone
$1,161.98 – $1,170.49 makes our short term resistance projection for profit
taking and expected short term corrective wave at zone $1,187.12 - $1,192.50.
This zone is a Fibonacci confluence zone, $1,187.12 is a 116.2% Fibonacci extension (profit
taking level) of the impulse wave $1,072.09 low and $1,171.08 high while $1,192.50
is 75% Fibonacci retracement point of the downtrend $1,072.09 low and $1,232.30
high.
Trade Advice:
As long as
price action trades above the long and short term moving averages which just
crossover and trending in the upside direction, we consider the commodity still
bullish for more upside rally.
In the near
term, correction is expected to the downside towards support zone $1,161.98 –
$1,170.49 to give the bulls opportunity to re-enter another impulse wave.
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