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Technical Precious Metals
Written by article default Wednesday, 09 March 2011 17:05
GoldMidday Report
The metal inclined ideally from the support line of the bullish channel, supported by positivity from momentum indicators. Gold is now attempting to confirm the bullish crossover on Stochastic accompanied by a bullish reversal from the support line. Now, stability above SMA 20 at 1430.00, followed by breaching 1438.00 will be an indication for starting a new bullish wave, which is supported by the harmonic structure, discussed in the weekly report.
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 | 1420.00 | 1415.00 | 1410.00 | 1406.00 | 1402.00 |
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| Resistance | 1438.00 | 1445.00 | 1449.00 | 1452.00 | 1455.00 |
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| Recommendation | Our morning expectations remain valid. | ||||
Silver
Midday Report
Trading steadily above 35.90-36.00 levels is another proof that the bullishness is to be resumed, supported by SMA 20, which prevented the metal from the awaited bearish correction, which was based on the negative sign on ADX. Now, stability above 35.90 made the green line +D surpass –D. Thereby, we hold onto our morning predications noting that stabilizing above 36.25 will fail attempts for another correction.
The trading range for today is among the key support at 33.75 and key resistance now at 37.15.
The general trend over short term basis is to the upside targeting 39.05 as far as areas of 30.80 remain intact with weekly closing.
| Support | 36.00 | 35.90 | 35.65 | 35.50 | 35.30 |
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| Resistance | 36.25 | 36.50 | 36.90 | 37.15 | 37.50 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying silver(cautiously) around 35.50 targeting 37.15 and stop loss with a four hour closing below 34.80 might be appropriate. | ||||