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Technical Precious Metals
Written by article default Monday, 14 March 2011 18:57
GoldMidday Report
Trading is trapped between 1430.00-1425.00, without a clear closing above the pivotal resistance areas of 1430.00. At the same time, gold attempts to stabilize above C point of the bullish harmonic butterfly pattern. Therefore, we may witness potential bullishness over intraday basis. This harmonic structure will not be confirmed unless the metal stabilizes above 1430.00.
The trading range for this week is among the key support at 1360.00 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 | 1416.00 | 1406.00 | 1402.00 | 1395.00 | 1388.00 |
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| Resistance | 1430.00 | 1438.00 | 1445.00 | 1452.00 | 1455.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold with a four hour closing above 1430.00 targeting 1494.00 and stop loss with a daily closing above 1402.00 might be appropriate. | ||||
Silver
Midday Report
The metal showed volatile actions without defining a clear trend. We need a closing above 36.05 or below 35.20 to judge if the metal completed the bearish harmonic AB=CD pattern or still the CD leg will extend further. We will be waiting for a clearer sign for the rest of the day.
The trading range for this week is among the key support at 32.00 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 | 35.65 | 35.20 | 35.00 | 34.60 | 34.30 |
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| Resistance | 36.05 | 36.90 | 37.20 | 37.50 | 37.95 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver with a daily closing below 35.20 targeting 32.85 and stop loss with a four hour closing above 35.60 might be appropriate. | ||||