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Technical Precious Metals
Written by article default Friday, 11 February 2011 11:59
GoldMorning Report
After yesterday’s downside move, gold returned to trade around the 61.8% of CD from the AB=BC bullish pattern which is attempting to test 76.4% correction of the same leg at 1372.00, which might extend towards 1380.00-1384.00; the 88.6% correction. On the other hand, we should remain very cautious as the upside move that is expected to continue today is merely correctional for the preceding downside move from areas above 1400.00, A four-hour closing below 1344.00 signals the bearishness for gold once more.
The trading range for today is among the key support at 1335.00 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 | 1358.00 | 1352.00 | 1348.00 | 1340.00 | 1335.00 |
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| Resistance | 1366.00 | 1372.00 | 1376.00 | 1380.00 | 1384.00 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying gold around 1358.00 targeting 1395.00 and stop with four-hour below 1344.00 might be appropriate | ||||
Silver
Morning Report
The strong decline seen yesterday did not breach the main support for the ascending channelorganizing the bullishness, which we still see valid for today. Continued attempts at 30.72 are highly likely though as far as 29.46 remain intact. We still see the bullishness intact especially as silver failed to close above top C from the bullish AB=CD pattern and that might extend the upside move towards 127% correction of CD.
The trading range for today is among the key support at 28.95 and the key resistance at 31.90.
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 | 30.00 | 29.80 | 29.60 | 29.46 | 29.05 |
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| Resistance | 30.35 | 30.72 | 30.85 | 31.00 | 31.20 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying silver around 30.00 targeting 31.90 and stop loss with four-hour closing below 29.46 might be appropriate | ||||