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Technical Precious Metals
Written by article default Thursday, 03 February 2011 12:52
GoldMidday Report
From areas around 1327.00, gold gained some bullish momentum to move to the upside again towards the main harmonic resistance and 38.2% correction of CD from the AB=CD bullish pattern. Morning expectations remain valid for the rest of the day. Our expectations require stability above 1298.00-1302.00.
The trading range for today is among the key support at 1298.00 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 | 1327.00 | 1322.00 | 1312.00 | 1310.00 | 1302.00 |
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| Resistance | 1340.00 | 1344.00 | 1350.00 | 1355.00 | 1360.00 |
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| Recommendation | Our morning expectations remain valid | ||||
Silver
Midday Report
From areas near the bottom B point of the bullish AB=CD pattern, silver is attempting to gather the bullish momentum to enter a new upside wave that could drive the metal to the first extended target mentioned at 28.95 the 76.4% correction; breaching the latter might extend the upside move further to extended targets. The movement remains above the main resistance for the harmonic pattern and accordingly we hold onto our morning expectation.
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 | 29.20 |
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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 | ||||