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Technical Precious Metals
Written by article default Monday, 14 February 2011 18:53
GoldMidday Report
Gold continued its decline but there are some technical factors that argue us to hold onto our weekly predications. First, it is still stable above the bottom of B point of AB=CD pattern, which is supported by the butterfly pattern, and secondly is the positive crossover on Stochastic. Additionally, it can't breach 1352.00 with a four hour closing, while 1344.00 acts as a solid floor and thus, 1372.00 could be retested and probably, gold will revisit 1380.00-1384.00 areas.
The trading range for today is among the key support at 1330.00 and key resistance now at 1372.00.
The general trend over the short term basis is to the downside targeting $1208.00 per ounce as far as areas of 1485.00 remain intact.
| Support | 1355.00 | 1352.00 | 1344.00 | 1335.00 | 1330.00 |
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| Resistance | 1360.00 | 1367.00 | 1372.00 | 1376.00 | 1380.00 |
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| Recommendation | Our weekly expectations remain valid. | ||||
Silver
Midday Report
From 29.90 areas exactly, silver rebounded bullishly and we can see it facing the resistance of 30.15. The bullish effect of AB=CD pattern is still in favor since the pair stabilized above C point. Stochastic is moving higher but silver should stabilize above 29.40-29.60 and much better above 29.80 to weaken chances of drawing a bearish classical pattern if the aforesaid level is breached. To conclude, as far as the metal stabilizes above 29.80, we will keep our weekly scenario intact.
The trading range for today is among the key support at 28.60 and key resistance now at 30.72.
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 | 29.40 | 29.05 | 28.95 |
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| Resistance | 30.15 | 30.35 | 30.72 | 31.20 | 31.40 |
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| Recommendation | Our weekly expectations remain valid. | ||||