The metal departed the short term descending channel after breaching its resistance yesterday at 468.00; as well it managed to breach the 20 MA to start an upside correction seen on the daily chart below.
This breach was followed by the completion of a bullish double bottom with the neckline at 473.00 and the metal is attempting to breach it but held back by negative momentum seen over four-hour basis. Accordingly, we expect an upside correction targeting 485.00 then 492.00 where we will monitor the metal as stabilizing above them will extend the upside move towards 535 –the main resistance for the upside channel that has been organizing trades since last May-. In general, we expect an upside move in the coming period where if it breaches 492.00 will continue towards 535.00; this scenario requires steady trading above 465.00.
By: Yasir Mubarak
Senior Technical Analyst