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Technical Precious Metals
Written by article default Thursday, 03 March 2011 11:23
GoldMorning Report
After touching the support levels around 1425.00, the metal sharply inclined confirming stability above C point of the bullish harmonic butterfly pattern. Henceforth, areas around 127.2% of CD leg might be touched according to the harmonic rules, despite clear overbought signs on RSI and Stochastic, but SMA 20 and SMA 50 that are carrying the metal as well. To recap, we hold onto our bullish predications over intraday basis as far as 1410.00 remains intact with four hour closing.
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 | 1430.00 | 1425.00 | 1420.00 | 1415.00 | 1406.00 |
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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 1410.00 might be appropriate. | ||||
Silver
Morning Report
From 34.23 levels, silver inclined once more signaling that the extended levels around of BC leg is to be touched sooner; although momentum indicators are showing overbought signs, but stability above 33.75-34.15 is a good sign that D2 at 36.00 levels might be visited. We should observe the price behaviors carefully between 35.10 and 35.10 zones since a breakout above them is needed to push the metal upwards towards 200% of BC leg.
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 | 34.60 | 34.60 | 34.15 | 34.00 | 33.75 |
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| Resistance | 34.95 | .5.00 | 35.10 | 35.30 | 35.60 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying silver around 34.30 targeting 36.00 and stop loss with a four hour closing below 34.00 might be appropriate. | ||||