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Technical Precious Metals
Written by article default Wednesday, 16 March 2011 12:20
GoldMorning Report
Gold declines yesterday, but at the same time we see that the price closed above 38.2% Fibonacci at 1392.00. This correctional level is for the upside wave that we discussed in our weekly report. We mentioned that we need to witness a four hour closing above 1430.00 or a breakout below 1400.00 to confirm a specific direction, where the pivotal support of 1400.00 was breached but RSI is attempting to achieve a bullish sign and the four hour closing is above 1392.00. Although MACD is negative and the bullish channel is breached but the contradiction between these factors force us to keep our neutrality intact since risk versus reward ratio is too high.
The trading range for today is among the key support at 1362.00 and key resistance now at 1445.00.
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 | 1392.00 | 1388.00 | 1380.00 | 1376.00 | 1370.00 |
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| Resistance | 1402.00 | 1406.00 | 1415.00 | 1420.00 | 1432.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||
Silver
Morning Report
By looking at the metal from a pure classical point of view; we see bearish signs appearing on technical indicators as ADX is negative and also MACD. On the other hand, signs of bearish classical pattern started to appear, and we can say that potential double top is seen on the graph. Breaching the support line of the channel supports the expected bearish direction as SMA 20 and SMA 50 are defiantly negative. All the above discussed signs force us to suggest more bearish actions over intraday basis. Areas of 32.80-32.85 are now under our technical microscope and we recommend reviewing yesterday's report for more details about the negative signs.
The trading range for today is among the key support at 32.82 and key resistance now at 36.05.
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 | 34.00 | 33.75 | 33.60 | 33.30 | 33.10 |
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| Resistance | 34.30 | 34.60 | 34.85 | 35.00 | 35.65 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 34.30 targeting 32.85 and stop loss with a four hour closing above 35.35 might be appropriate. | ||||