After reaching the recorded top at 570.50 the metal started a downside correction reaching 38.2% as provided on the weekly chart above. We can see that the 50 MA is supporting the metal from below, while Stochastic entered oversold areas, signaling that the metal will continue the medium term upside move targeting the sensitive 585.00 which will determine the general trend for the metal.
Breaching the aforesaid level extends the upside move towards the main targets around 732.00.
In general, we can find the short and medium term trends are to the upside towards the set targets, though breaching 410.00-400.00 support area might extend the correction towards 365.00 while the medium term trend remains valid as far as trading is above 314.00.
By: Yasir Mubarak
Main Technical Analyst