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Technical Precious Metals
Written by article default Saturday, 22 January 2011 09:47
GoldMidday Report
Gold carried serious attempts to fail forming the harmonic Bat Pattern that was proposed earlier. Stability below 1344.00 is essential to confirm the Harmonic Butterfly pattern, which might take gold towards 1322.00 and maybe 1398.00, where we can see gold attempting to stabilize below 1344.00 as seen on the secondary image. Therefore, we hold onto our morning expectations and recommend reviewing the morning report for more details.
The trading range for today is among the key support at 1298.00 and key resistance now at 1388.00.
The short term trend is to the downside targeting 1208.00 per ounce as far as areas of 1485.00 remain intact.
| Support | 1339.00 | 1330.00 | 1322.00 | 1315.00 | 1298.00 |
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| Resistance | 1350.00 | 1355.00 | 1360.00 | 1365.00 | 1372.00 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling gold around 1355.00 targeting 1398.00 and stop loss with four-hour closing above 1388.00 might be appropriate today | ||||
Silver
Midday Report
Trading is steady below 27.45-55 singling that the negativity of the Butterfly Pattern is still valid pushing the metal to the downside to acquire the full CD leg of the AB=CD. The latter took the pair to the harmonic targets and still organizing trading towards extended targets; therefore, we hold onto our morning expectations despite the expected volatility and upside correctional moves, due to the heavy selling saturation on momentum indicators.
The trading range for today is among the key support at 26.00 and the key resistance at 29.75.
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 | 27.25 | 27.15 | 26.90 | 26.52 | 26.00 |
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| Resistance | 27.45 | 27.55 | 27.90 | 28.05 | 28.15 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling silver around 27.45 targeting 26.50 and stop loss with four-hour closing above 28.15 might be appropriate | ||||