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Technical Precious Metals
Written by article default Tuesday, 22 March 2011 20:22
GoldMidday Report
Gold declines, suggesting that it is on the way to cover the gap. Trading above C point of the previous explained butterfly and the need for covering the gap makes us keep our neutrality intact for the rest of the day. Additionally, Stochastic is trending upwards; while approaching overbought areas. In the interim, RSI started to move lower and thus, the contrarian between these signs confirms our neutral outlook.
The trading range for today is among the key support at 1392.00 and key resistance now at 1452.00.
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 | 1412.00 | 1410.00 | 1402.00 | 1392.00 |
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| Resistance | 1432.00 | 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
The hourly interval shows how the metal is trading around 36.05 levels after an hourly closing below those areas. Furthermore, the metal retested the major support of ascending channel, where it moved lower again. Stochastic and RSI are trending lower, while SMA 20 acts as a ceiling. All these signs are negative and make us hold onto our negative predications for the rest of the day.
The trading range for today is among the key support at 34.25 and key resistance now at 37.75.
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 | 35.85 | 35.65 | 35.50 | 35.35 |
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| Resistance | 36.30 | 36.50 | 36.90 | 37.20 | 37.50 |
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| Recommendation | Our morning expectations remain valid. | ||||