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Technical Precious Metals
Written by article default Thursday, 24 February 2011 11:14
GoldMorning Report
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Gold notably inclined, supported by two factors; SMA 20 and failure of breaching 1395.00. This incline took it towards 127% of CD leg of the bullish AB=CD pattern-the image at the left side-; meanwhile, it stabilized above the harmonic resistance of the butterfly pattern at 1410.00 where 88.6% of CD leg exists -to the right-. Momentum indicators are showing obvious overbought signs, while a negative divergence seems to be under preparation on RSI. Henceforth, the effect of 127% of AB=CD pattern might force gold to decline below 88.6% of the butter fly pattern. Chances for achieving possible bearishness over intraday basis is still intact, but areas of 1420.00-1430.00 should hold to keep this scenario valid. A break of 1406.00 with a four hour closing will confirm our constructive outlook.
The trading range for today is among the key support at 1362.00 and key resistance now at 1455.00.
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 | 1406.00 | 1402.00 | 1395.00 | 1388.00 | 1380.00 |
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| Resistance | 1416.00 | 1420.00 | 1425.00 | 1430.00 | 1445.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold with a four hour closing below 1406.00 targeting 1380.00 and stop loss with a four hour closing above 1420.00 might be appropriate. | ||||
Silver
Morning Report
Due to yesterday's sharp incline, our intraday expectations failed but the short term outlook remains bearish since trading is still below 34.15 zones. Momentum indicators still confirm the efficiency of bearish harmonic structure, which could send the metal once more. Closing above 33.60, which occurred this morning, could not continue for more than one candlestick recording 33.64 as the price came below it again. Henceforth, today's trend might be bearish but note that risk versus ratio is too high and areas of 34.15 should hold to keep this outlook valid
The trading range for today is among the key support at 31.40 and key resistance now at 35.10.
The general trend over short term basis is to the downside targeting 29.40 as far as areas of 35.10 remain intact with weekly closing.
| Support | 33.65 | 33.25 | 33.10 | 32.85 | 32.45 |
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| Resistance | 33.60 | 33.75 | 34.15 | 34.30 | 34.80 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 33.60 targeting 31.40 and stop loss with a four hour closing above 34.30 might be appropriate. | ||||