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Technical Precious Metals
Written by article default Thursday, 06 January 2011 03:54
GoldMidday Report
The overbought signs on momentum indicators prevented the metal from resuming the bearishness and achieving the breakout for the support line; but at the same time, trading below 1395.00 weaken chances for achieving the bullishness. Henceforth, we will keep our neutrality unchanged for the rest of the day, waiting for more confirmation or at least until the momentum indicators are relieved.
The trading range for today is among the key support at 1335.00 and key resistance now at 1445.00.
The general trend over the short term basis is to the downside targeting $1208.00 per ounce as far as areas of 1485.00 remain intact.
| Support | 1376.00 | 1372.00 | 1365.00 | 1358.00 | 1350.00 |
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| Resistance | 1388.00 | 1395.00 | 1402.00 | 1406.00 | 1413.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||
Silver
Midday Report
The previous explained bearish butterfly pattern, which couldn't achieve its ideal symmetry of Fibonacci ratios, came back into focus. The sharp decline, which occurred before touching 31.40 makes us consider it a correct pattern. Now, the metal is trading below 61.8% -the second technical objective- and thus the bearishness may continue for the rest of day towards 29.00 -76.4% Fibonacci- but oversold signs on momentum indicators make us hold onto our neutrality.
The trading range for today is among the key support at 29.05 and key resistance now at 32.05.
The general trend over the short term basis is to the upside targeting $32.55 per ounce as far as the weekly closing remains above 29.80 areas.
| Support | 29.05 | 29.00 | 28.85 | 28.60 | 28.45 |
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| Resistance | 29.65 | 29.85 | 30.00 | 30.15 | 30.35 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||