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Technical Precious Metals
Written by article default Thursday, 17 February 2011 12:22
GoldMidday Report
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Back to the classical studies, gold is consolidating above the neckline of the suggested head and shoulders pattern as seen on the provided four hour chart. The metal succeeded in drawing an uptrend line with potential support at 1368.00 zones, which might be retested before resuming the bullishness for the rest of the day towards 1395.00 zones. Furthermore, SMA 50 is presently carrying gold from below, solidifying the bullish trend. Carefully note that this classical outlook matches the harmonic probability that we discussed in our previous reports.
The trading range for today is among the key support at 1348.00 and key resistance now at 1402.00.
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 | 1372.00 | 1366.00 | 1358.00 | 1354.00 | 1348.00 |
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| Resistance | 1380.00 | 1384.00 | 1395.00 | 1402.00 | 1406.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1372.00 targeting 1395.00 and stop loss with a four hour closing below 1358.00 might be appropriate. | ||||
Silver
Midday Report
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Normal consolidation is seen due to facing the extended technical target of our captured bullish harmonic AB=CD pattern at 127.2% Fibonacci projection of BC leg. The pivotal support around 30.35 might be revisited to relive the recent negativity of Stochastic and to assist silver gather the momentum it needs in order to breach 127.2% on the way towards 161.8% Fibonacci of CD leg. We remind you that a break of 30.22-30.25 zones will be a very positive indication over intraday basis and to conclude, we still believe that the metal will move higher for the rest of the day.
The trading range for today is among the key support at 29.46 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 | 29.25 |
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| Resistance | 30.85 | 31.00 | 31.20 | 31.40 | 31.70 |
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| Recommendation | Our morning expectations remain valid. | ||||