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Technical Precious Metals
Written by article default Thursday, 20 January 2011 18:18
GoldMidday Report
Over four-hour basis, Stochastic is oversold restricting gold from resuming the downside move. Nevertheless, with stability below 1360.00 with daily closing, gold will offset the positive effect and extend the downside move to complete the bearish CD leg. Stability below 1378.00 keeps the bearishness valid while intraday expectations fail with daily closing above 1395.00.
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 | 1360.00 | 1355.00 | 1350.00 | 1344.00 | 1339.00 |
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| Resistance | 1372.00 | 1378.00 | 1380.00 | 1388.00 | 1395.00 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling gold around 1376.00 targeting 1320.00 and stop loss with four-hour closing above 1395.00 might be appropriate today | ||||
Silver
Midday Report
Silver is biased to the downside ideally after a failed attempt to return to the upside trading below the harmonic resistance, which it attempted to exit yesterday. Currently, silver is facing the support at 28.25 and 28.05 where a breach and stability below those levels will clearly accelerate the bearishness affected by the AB=CD pattern, alongside the continuation of the bearish Butterfly Pattern. Accordingly, we preserve our morning expectations.
The trading range for today is among the key support at 26.90 and the key resistance at 29.85.
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 | 28.25 | 28.05 | 27.90 | 27.55 | 29.25 |
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| Resistance | 28.60 | 28.75 | 29.05 | 29.20 | 29.60 |
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| Recommendation | Our morning expectations remain valid | ||||