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Technical Precious Metals
Written by article default Monday, 21 February 2011 15:14
GoldMidday Report
Without any correctional movements, gold is inclining affected by stability above 1390.00-1395.00, which represent the first extended technical target of the butterfly pattern, explained in the weekly report. At the same time, these areas represent C point of the bullish harmonic AB=CD pattern. We believe that zones of 1410.00-1416.00 could be retested but we should be careful as momentum indicators are clearly showing overbought signs. Henceforth, some kind of fluctuation might affect the bullishness for the rest of the day. Note that the price behaviors around 1416.00 should be observed and our weekly recommendation are now canceled as the metal is close to the target without touching the awaited entry levels.
The trading range for this week is among the key support at 1344.00 and key resistance now at 1452.00.
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 | 1395.00 | 1384.00 | 1380.00 | 1375.00 | 1364.00 |
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| Resistance | 1406.00 | 1410.00 | 1425.00 | 1432.00 | 1438.00 |
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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 the next big move. | ||||
Silver
Midday Report
Silver inclines without any corrections, while momentum indicators are entering overbought zones. The price approaches the PRZ of the bearish harmonic AB=CD pattern gradually. Areas around 34.15-34.25 represent the first technical objective and we should observe then cautiously since the harmonic pattern is a bearish pattern. We suggest more bullishness for the rest of the day but we should be careful when silver comes closer to 34.15 levels.
The trading range for this week is among the key support at 30.35 and key resistance now at 35.10.
We prefer observing 30.80 and 34.15 levels with the weekly closing to confirm the short term direction.
| Support | 33.20 | 32.90 | 32.55 | 32.35 | 31.95 |
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| Resistance | 33.75 | 34.15 | 34.25 | 34.80 | 35.10 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying silver around 32.55 targeting 34.15 and stop loss with a daily closing below 31.40 might be appropriate. | ||||