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Technical Precious Metals
Written by article default Wednesday, 19 January 2011 15:39
GoldMidday Report
Gold is trading to the upside for the second consecutive day, while the metal is still trading below the harmonic resistance and the 20 & 50 MA as shown above. Therefore, we hold onto our morning expectations, which require stability below 1395.00 and preferably below the harmonic resistance at 1378.00.
The trading range for today is among the key support at 1320.00 and key resistance now at 1402.00.
The short term trend is to the downside targeting 1208.00 per ounce as far as areas of 1485.00 remain intact.
| Support | 1365.00 | 1360.00 | 1355.00 | 1350.00 | 1344.00 |
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| Resistance | 1378.00 | 1380.00 | 1388.00 | 1395.00 | 1402.00 |
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| Recommendation | Our morning expectations remain valid | ||||
Silver
Midday Report
Positivity is controlling silver’s trading due to stability above the harmonic resistance. Nonetheless, the buying saturation on Stochastic makes us expect the return below the mentioned resistance and shown above, in addition to breaching 28.75 to negate the positivity, and return to the bearishness to complete the CD leg of the harmonic AB=CD pattern. Note that a four-hour closing above 29.75-85 weakens the chances for the intraday bearishness.
The trading range for today is among the key support at 27.25 and the key resistance at 30.00.
The general trend over short term basis is to the downside targeting 23.60 as far as areas of 30.80 remain intact with weekly closing.
| Support | 29.05 | 29.00 | 28.75 | 28.60 | 28.45 |
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| Resistance | 29.45 | 29.60 | 29.75 | 29.85 | 30.00 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling silver with the breach of 28.75 targeting 26.90 and stop loss with four-hour closing above 29.60 might be appropriate | ||||