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Technical Precious Metals
Written by article default Saturday, 05 February 2011 10:31
GoldMidday Report
Gold fell gradually and approaching 1344.00, which was mentioned as areas where gold could find good demand. Currently, the metal is stable above 38.2% correction; the first harmonic target and might push gold to the second target at 61.8% and breaching the latter will push gold higher towards the extended harmonic targets. Therefore, we hold onto our morning expectations for the rest of the day.
The trading range for today is among the key support at 1302.00 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 | 1344.00 | 1340.00 | 1335.00 | 1327.00 | 1322.00 |
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| Resistance | 1352.00 | 1355.00 | 1360.00 | 1366.00 | 1372.00 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying gold around 1344.00 targeting 1380.00 and stop loss with four-hour closing below 1322.00 might be appropriate today | ||||
Silver
Midday Report
Trading remains within a tight range, yet Stochastic did not unload its negativity and the downside possibility remains valid. Trading above 61.8% correction of CD leg from the bullish AB=CD pattern keeps the upside potential valid to breach the first extend target at 76.4% of CD around 28.85-95, and breaching the latter might clearly extend the bullishness. Therefore, we hold onto our morning expectations.
Note: We recommend observing trading closely as Silver acquired the appropriate upside targets and now the failure to breach any coming target might trigger a strong reversal
The trading range for today is among the key support at 27.65 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 | 28.75 | 28.45 | 28.25 | 28.15 | 27.80 |
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| Resistance | 29.95 | 29.05 | 29.20 | 29.60 | 29.85 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying silver around 28.50 targeting 28.95 and stop loss with four-hour closing below 27.65 might be appropriate today | ||||