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Technical Precious Metals
Written by article default Monday, 11 April 2011 15:48
GoldMidday Report
Gold is presently showing some kind of weakness and this is normal price behaviors due to the clear overbought signs appearing on momentum indicators. Trading above 1455.00 argues us to hold onto our bullish predictions for the rest of the day. Note that, stability above 1474.00 will cancel out the chances of achieving the anticipated correction before resuming the harmonic upside rally, which we discussed in details this morning.
The trading range for today is among the key support at 1424.00 and key resistance now at 1500.00.
The general trend over the short term basis is to the downside, targeting $ 1208.00 per ounce as far as areas of 1500.00 remain intact.
| Support | 1460.00 | 1455.00 | 1449.00 | 1445.00 | 1438.00 |
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| Resistance | 1474.00 | 1480.00 | 1488.00 | 1495.00 | 1500.00 |
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| Recommendation | Our weekly expectations remain valid. | ||||
Silver
Midday Report
The four chart has drawn a bearish candlestick structure around the pivotal resistance of the upside channel. At the same time, RSI and Stochastic started to give off negative signs and therefore, we might witness bearish correction for the rest of the day. We should note that the general upside trend is favored as far as 40.20-39.25 remain intact but the awaited downside move is seen as a correction due to the above discussed negative signs. A breakout above 42.05 will damage be an alert that the correction will not occur.
The trading range for today is among the key support at 39.25 and key resistance now at 43.10.
The general trend over short term basis is neutral until we see how the metal will behave around 42.0542.30 zones.
| Support | 40.95 | 40.60 | 40.20 | 39.85 | 39.25 |
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| Resistance | 41.50 | 41.80 | 42.05 | 42.50 | 43.10 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 41.50 targeting 40.60 and stop loss with a four hour closing above 42.05 might be appropriate. | ||||