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Technical Precious Metals
Written by article default Tuesday, 25 January 2011 09:52
GoldMorning Report
Gold continues forming the CD leg of the suggested harmonic butterfly structure. Presently, levels of 1322.00 represent the first PRZ and a break of which will take us towards 1298.00 zones; therefore, we hold onto our negative predictions over intraday basis. Note that we should observe the price behaviors around D 1, since the price may fail to penetrate it.
The trading range for today is among the key support at 1295.00 and key resistance now at 1366.00.
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 | 1330.00 | 1322.00 | 1315.00 | 1298.00 | 1295.00 |
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| Resistance | 1339.00 | 1344.00 | 1350.00 | 1355.00 | 1360.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1339.00 targeting 1298.00 and stop loss above 1344.00 might be appropriate. | ||||
Silver
Morning Report
The price is approaching the previous suggested technical objective of 26.52, which represent the PRZ as momentum indicators show clear oversold signs. We need to make sure that silver will breach this level as the pattern itself is a bullish harmonic AB=CD and it may be completed there. At the same time, a break of 26.50 will send it towards the extended technical targets of the butterfly pattern at 161.8% of CD leg. Thereby, our outlook will be neutral until we get a clearer sign to pinpoint the upcoming direction.
The trading range for today is among the key support at 25.35 and key resistance now at 28.05.
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 | 26.52 | 26.40 | 26.00 | 25.80 | 25.35 |
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| Resistance | 27.15 | 27.25 | 27.45 | 27.55 | 27.90 |
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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. | ||||