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Technical Precious Metals
Written by article default Wednesday, 02 February 2011 14:19
GoldMidday Report
Gold declined affected by the horizontal resistance shown above and also the 38.2% correction. Still, this is not much to worry about with trading steady above 1302.00 where even stability above 1327.00 makes us hold onto our morning expectations for the rest of the day, affected by the bullish AB=CD pattern. Breaching areas of 1344.00 with stability above it will extend the upside move towards the second harmonic target at 1360.00 followed by areas of 1372.00-1380.00 which are the extended targets.
The trading range for today is among the key support at 1302.00 and key resistance now at 1380.00.
The short term trend is to the downside targeting 1208.00 per ounce as far as areas of 1485.00 remain intact.
| Support | 1335.00 | 1327.00 | 1322.00 | 1312.00 | 1310.00 |
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| Resistance | 1344.00 | 1350.00 | 1355.00 | 1360.00 | 1366.00 |
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| Recommendation | Our morning expectations remain valid | ||||
Silver
Midday Report
We mentioned the possibility of heavy fluctuations due to the negativity on Stochastic, and as we can see now a slight downside and volatile move. At the same time, silver returned to trade below 61.8% correction as shown above; nevertheless, the pair is still stable above the harmonic resistance which supports the possibility of returning to the upside to stabilize above the correction level mentioned at 28.45, then to the first extended harmonic target at 28.95. Therefore, our morning expectations remain valid supported by the bullish harmonic pattern.
The trading range for today is among the key support at 26.50 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 | 28.15 | 27.80 | 27.65 | 27.45 |
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| Resistance | 28.45 | 28.75 | 28.90 | 29.05 | 29.60 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying silver around 28.15 targeting 28.95 and stop loss with four-hour closing below 27.65 might be appropriate today | ||||