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Technical Precious Metals
Written by article default Monday, 04 April 2011 18:27
GoldMidday Report
The price traded within tight range, where Stochastic is touching overbought areas and also RSI started to show some kind of technical exhaustion. Both indicators prevented the metal from stabilizing above 1438.00; thereby, the bearish harmonic structure is still valid but we need to witness a four hour closing below 1424.00 to make sure that the metal will not move towards 1462.00-1464.00 to draw a crab pattern. In general, our bearish overview remains valid.
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 of1485.00 remain intact.
| Support | 1430.00 | 1424.00 | 1416.00 | 1409.00 | 1401.00 |
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| Resistance | 1438.00 | 1440.00 | 1445.00 | 1449.00 | 1452.00 |
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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 with a four hour closing above 1438.00 might be appropriate. | ||||
Silver
Midday Report
Major positive momentum assisted the metal to neglect the overbought sign appeared on Stochastic; whie RSI is approaching overbought areas too. Now, the metal stabilized above 38.15 and thus more upside movements could be seen, but the harmonic crab pattern remain valid. This pattern argues us to keep our weekly anticipations intact for the rest of the day. Coming beneath 38.15 will be another negative indication.
The trading range for this week is among the key support at 34.30and key resistance now at 39.25.
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 | 38.15 | 37.75 | 37.50 | 37.20 | 37.05 |
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| Resistance | 38.68 | 39.00 | 39.05 | 39.25 | 39.40 |
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| Recommendation | Our weekly expectations remain valid. | ||||