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Technical Precious Metals
Written by article default Monday, 07 February 2011 15:57
GoldMidday Report
Looking back at the bullish AB=CD pattern which is supported by the bullish Bat Pattern, we can see that gold is stable above 38.2% correction, which is the first target for the pattern at 1340.00. Consolidation above this level might extend the upside move towards 61.8% correction and maybe 76.4% correction for the same leg as shown above. Therefore, we expect an upside move for the rest of the day.
The trading range for this week is among the key support at 1298.00 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 | 1330.00 | 1322.00 |
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| Resistance | 1352.00 | 1360.00 | 1366.00 | 1372.00 | 1380.00 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying gold around 1335.00 targeting 1380.00 and stop below 1310.00 might be appropriate this week | ||||
Silver
Midday Report
Silver’s upside move is strong enough offsetting the effects of the negative momentum. The metal might start to decline slightly to retest areas of 28.95 and 28.60 before rushing to the upside once again. After the end of the downside correction, we believe that silver will move to the upside once again affected by the bullish AB=CD pattern which signals extended targets.
The trading range for this week is among the key support at 27.65 and the key resistance at 30.70.
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 | 28.95 | 28.60 | 28.45 | 28.15 | 27.90 |
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| Resistance | 29.46 | 29.85 | 30.00 | 30.15 | 30.35 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying silver around 28.45 targeting 29.80 and stop loss with four-hour closing below 27.90 might be appropriate this week | ||||