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Technical Precious Metals
Written by article default Friday, 18 February 2011 15:46
GoldMidday Report
Despite of the bearish sign of Stochastic but the metal is stable above 88.6% of CD leg for the bullish harmonic AB=CD pattern. This factor proposes that the bullishness will continue, affected by the harmonic butterfly pattern, which was mentioned this morning. According to the harmonic rules, a break of 76.4% opens the door towards C point and now, gold is stable above 88.6%. Thereby, we hold onto our morning predications for the rest of the day as far as the metal stabilizes above 1372.00-1370.00 zones.
The trading range for today is among the key support at 1354.00 and key resistance now at 1413.00.
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 | 1380.00 | 1376.00 | 1370.00 | 1362.00 | 1358.00 |
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| Resistance | 1388.00 | 1395.00 | 1402.00 | 1406.00 | 1413.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1380.00 targeting 1395.00 and stop loss with a four hour closing below 1370.00 might be appropriate. | ||||
Silver
Midday Report
The metal soared towards the awaited technical objective at 161.8% of CD leg at 31.90-31.92 zones, where silver reached all its projected extended technical targets. The price stabilized around the resistance of 31.92. Therefore, we should be careful since Stochastic and RSI are showing overbought signs. We might witness some kind of fluctuation and also correctional actions as seen on the provided graph. The bullish channel could push the metal upwards, targeting 32.45-32.50 zones over the upcoming period as far as trading remains above 31.00-30.70.
The trading range for today is among the key support at 30.35 and key resistance now at 33.00.
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 | 31.60 | 31.40 | 31.20 | 31.00 | 30.85 |
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| Resistance | 31.90 | 32.00 | 32.45 | 32.65 | 33.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying silver around 31.20 targeting 32.45 and stop loss with a four hour closing below 30.70 might be appropriate. | ||||