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Technical Precious Metals
Written by article default Friday, 04 March 2011 18:47
GoldMidday Report
The metal is trading within a very narrow range, closely to the support mentioned in our morning report. In fact, it is very important to witness stability above 1425.00 -C point- of the bullish harmonic butterfly pattern to confirm the upside wave. Stochastic is trending upwards and that may assist the metal to stabilize above the aforementioned levels. Fibonacci of 127.2% of CD leg around 1455.00 represents our suggested technical objective.
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 | 1415.00 | 1406.00 | 1402.00 | 1395.00 | 1388.00 |
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| Resistance | 1425.00 | 1430.00 | 1438.00 | 1445.00 | 1448.00 |
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| Recommendation | Our morning expectations remain valid. | ||||
Silver
Midday Report
The metal is trading within tight range above the first PRZ of the harmonic structure as seen on our provided image. RSI is touching levels of 70.00 within overbought areas but stability above D1 makes us suggest visiting D2 of AB=CD. The D2 resides at 200% Fibonacci projection of CD leg at 36.00. Carefully note that a daily closing below 33.75 will cancel the bullish anticipations since the harmonic formation is bearish.
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 | 34.60 | 34.95 | 35.00 | 35.10 | 35.30 |
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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. | ||||