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Technical Precious Metals
Written by article default Tuesday, 22 March 2011 00:51
GoldMidday Report
Trading remains positive above C point, suggesting that 127.2% Fibonacci projection of CD leg of the bullish harmonic butterfly pattern could be visited as seen on the provided daily chart. Therefore, areas of 1455.00 could be touched but the metal opened the week with a gap that haven’t been covered yet and thereby, trading may come back below C point to cover this gap. In result, we prefer staying aside as covering this gap may send the metal towards 1425.00 and also fail to stabilize above this level. The potential resistance resides around 1435.00, which we believe it will define the upcoming direction.
The trading range for this week is among the key support at 1376.00 and key resistance now at 1494.00.
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 | 1416.00 | 1410.00 | 1406.00 | 1402.00 |
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| Resistance | 1435.00 | 1438.00 | 1445.00 | 1449.00 | 1452.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer signs appears to pinpoint the upcoming big move. | ||||
Silver
Midday Report
Silver found difficulties in testing 36.05 and thus, the effect of the bearish harmonic pattern is still in favor. Stochastic is positive and this is considered a technical obstacle but if the metal reached these levels, the overbought sign may appear. Consequently, we keep our outlook intact for the rest of the day despite the positivity appearing on price behaviors. As far as trading remains below 37.20, the bearishness will be in favor and we might witness coverage for the gap.
The trading range for this week is among the key support at 32.85 and key resistance now at 39.05.
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 | 35.50 | 35.20 | 35.00 | 34.60 | 34.30 |
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| Resistance | 36.00 | 36.05 | 36.30 | 36.50 | 36.90 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 36.05 , gradually targeting 35.20, 34.30 and 32.82; while the stop loss is a daily closing above 37.20 might be appropriate. | ||||