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Technical Precious Metals
Written by article default Wednesday, 02 March 2011 18:13
GoldMidday Report
Since recording $300.00 per ounce, we were able to catch a technical notice as we can see that two consecutive weekly closings above a significant centesimal level, gold always visits the following centesimal level. For instance, two weekly closings above 1000.00 caused testing 1100.00 levels. It only happens when the metal records a new historical high comparing with 300.00 –not with the recorded highs of 1980s-.This price behavior didn't fail except twice in eleven times and these cases of failure are seen on the provided chart –shaded in red- and thus, the percentage of success is 81.8%. In the previous week, the metal succeeded in achieving a weekly closing above 1400.00 and since the opening of this week, gold stabilized above $1400.00 per ounce. So that, we believe that areas of $1500.00 per ounce might be visited later if the price closed above 1400.00 levels on coming Friday. This outlook supports our morning anticipations and we recommend reviewing it for more details.
The trading range for today is among the key support at 1388.00 and key resistance now at 1474.00.
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 | 1425.00 | 1420.00 | 1415.00 | 1406.00 | 1402.00 |
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| Resistance | 1438.00 | 1445.00 | 1449.00 | 1455.00 | 1474.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1425.00 targeting 1455.00 and stop loss with a four hour closing below 1406.00 might be appropriate. | ||||
Silver
Midday Report
Let us look at the four hour graph from a classical view, where we see that silver is trading within bullish channel. SMA 20 and SMA 50 are moving positively inside this aforementioned channel. Additionally, ADX and MACD are also positive. These technical factors argue us to suggest potential resumption for the current bullish wave, targeting 127.2%, followed by 161.8%, seen on the chart. Henceforth, levels around 35.00-35.10 are our next target and a break of which will bring additional bullishness towards 35.90-36.00 levels. These expectations require stability above 33.10 and preferably, above 33.75 over intraday basis.
The trading range for today is among the key support at 33.60 and key resistance now at 36.00.
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 | 34.30 | 34.15 | 34.00 | 33.75 | 33.60 |
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| Resistance | 34.80 | 35.00 | 35.10 | 35.30 | 35.60 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying silver around 34.15 (34.50 for risk takers) targeting 36.00 and stop loss with a four hour closing below 33.75 might be appropriate. | ||||