After the metal exited the main upside wave in correction for the wave that started from 745.00 towards 1752.50, the correction stopped around 23.6% correction for the upside wave, where the metal start to reflect an upside bias which started with the retest for the broken channel’s support which it did not manage to breach it; currently the metal is approaching this level once again to retest it which has risen towards 1660.00.
Looking deeper over daily basis, we can see the formation of a bullish pattern near completion with the neckline around 1602.00 though this level might be strong resistance as it meets with the 100 Days MA and accompanied by momentum indicators trading in overbought areas which increases the difficulty of the breach. Nonetheless, we still see that stability above 23.6% correction and the upside formation will take the metal into the previously breached bullish path targeting the previously recorded top at 1752.50 as an initial short term target. We remind you that the negative pressures mentioned might still restrict the bullishness and volatility might be witnessed around 1602.00 and 1660.00 resistance to unload negative momentum but as far as daily closing is steady above 1515.00 the upside wave remains intact.
By: Yasir Mubarak
Senior Technical Analyst