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Technical Precious Metals
Written by article default Tuesday, 15 February 2011 11:19
GoldMorning Report
The bullish harmonic butterfly proved its efficiency pushing the metal to the upside, once gold touches 1358.00-1352.00 it will start to move upwards despite of the overbought signs of Stochastic. The stable move above 38.2% Fibonacci of CD leg of the aforesaid harmonic formation makes us predicate more bullishness over intraday basis; SMA 50 acts as a resistance on the way towards the second technical objective of the pattern at 1380.00. A break of SMA 50 will send the metal higher towards the extended technical objectives at 76.4% around 1395.00. Note that, stability above 1348.00 is required to protect this scenario.
The trading range for today is among the key support at 1340.00 and key resistance now at 1395.00.
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 | 1362.00 | 1358.00 | 1348.00 | 1340.00 | 1335.00 |
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| Resistance | 1372.00 | 1376.00 | 1380.00 | 1384.00 | 1395.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1360.00 targeting 1395.00 and stop loss with a four hour closing below 1348.00 might be appropriate. | ||||
Silver
Morning Report
Silver is inclining due to the affect of the bullish harmonic AB=CD pattern, which we discussed earlier-click here to review this report-. Presently, the metal is touching the extended technical targets of the pattern around 127% projection of CD leg; a stable move above 30.72 will bring additional bullishness towards (A) point around 31.22, followed by 161.8% of CD leg at 31.91 but the overbought signs of Stochastic remain since we need more confirmation for achieving additional upside movements towards the extended targets. A four hour closing above 30.72 is needed to send the metal towards the aforementioned levels.
The trading range for today is among the key support at 28.95 and key resistance now at 31.91.
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 | 30.35 | 30.00 | 29.80 | 29.60 | 29.46 |
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| Resistance | 30.72 | 30.85 | 31.00 | 31.20 | 31.91 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||