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Technical Precious Metals
Written by article default Monday, 31 January 2011 17:27
GoldMidday Report
Gold is under some negative pressures to move lower, yet this was already expected as previously mentioned in our weekly report. Stochastic needs to unload the negative momentum before returning to the upside after finishing the correctional move; the bullish harmonic AB=CD pattern shown above supports the harmonic formation mentioned in the weekly report.
The trading range for this week is among the key support at 1275.00 and key resistance now at 1395.00.
The short term trend is to the downside targeting 1208.00 per ounce as far as areas of 1485.00 remain intact.
| Support | 1327.00 | 1322.00 | 1312.00 | 1302.00 | 1298.00 |
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| Resistance | 1339.00 | 1344.00 | 1352.00 | 1360.00 | 1366.00 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying gold around 1327.00 targeting 1380.00 and stop loss with four-hour closing below 1298.00 might be appropriate this week | ||||
Silver
Midday Report
Silver is fluctuating above 38.2% of CD leg of the suggested bullish AB=CD harmonic pattern. Stochastic is still negative that might keep the volatility evident with some downside bias, yet we expect silver to return to the upside after ending the current correction towards the second target at 61.8% of CD and might extend towards 76.4% correction.
The trading range for this week is among the key support at 26.00 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 | 27.65 | 27.55 | 27.25 | 27.15 | 26.50 |
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| Resistance | 28.05 | 28.30 | 28.50 | 28.80 | 29.00 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying silver around 27.55 targeting 28.95 and stop loss with daily closing below 26.50 might be appropriate this week | ||||