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Technical Precious Metals
Written by article default Friday, 01 April 2011 18:18
GoldMidday Report
The cluster resistance level of 1438.00 proved its solidity since we didn't witness a four hour closing above it. The bearish harmonic structure is still in favor and thus, we suggest potential downside move, but we shouldn't be in hurry to make a decision based on the harmonic structure as the metal is stable above X point. In result, we should witness a four hour closing below 1424.00 to confirm our overview.
The trading range for today is among the key support at 1392.00 and key resistance now at 1455.00.
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 | 1424.00 | 1420.00 | 1416.00 | 1409.00 | 1401.00 |
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| Resistance | 1432.00 | 1438.00 | 1440.00 | 1445.00 | 1449.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold with a four hour closing below 1424.00 targeting 1401.00 and stop loss above 1438.00 might be appropriate. | ||||
Silver
Midday Report
The sideways trading between 37.95 and 37.50 continued dominating the chart. At the same time, the metal is still trading between D level at 38.16 and 37.20 and both of them are important for defining the coming direction. We keep our morning outlook intact but not before breaching 37.20 to confirm the bearish effect of the harmonic crab pattern. Note that a break of the trend line will confirm the bearish direction.
The trading range for today is among the key support at 36.05 and key resistance now at 39.00.
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 | 37.50 | 37.20 | 37.05 | 37.00 | 36.90 |
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| Resistance | 37.75 | 37.95 | 38.10 | 38.68 | 39.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver with a four hour closing below 37.20, gradually targeting 36.43, 36.05 and 35.35; while the stop is a daily closing above 37.95 might be appropriate. | ||||