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Technical Precious Metals
Written by article default Wednesday, 13 April 2011 07:42
GoldMorning Report
The metal declined after recording 1468.00 as a high for yesterday's trading, but when we look at the provided graph, we will find that the price is stable above 1455.00 zones. Furthermore, it couldn't breach through 1438.00, suggesting that the downside move occurred to relieve momentum indicators. In general, the metal stabilized above 127.2% Fibonacci projection of CD leg of the butterfly pattern. Henceforth, the AB=CD pattern might be completed and in result, we keep our positive overview intact.
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 | 1455.00 | 1449.00 | 1445.00 | 1438.00 | 1435.00 |
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| Resistance | 1465.00 | 1468.00 | 1474.00 | 1485.00 | 1495.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1455.00 gradually targeting 1474.00 followed by 1495.00 and stop loss with a four hour closing below 1438.00 might be appropriate. | ||||
Silver
Morning Report
Silver succeeded in touching the pivotal levels around 40.80 before moving lower once again. The provided chart shows how the four hour closing was achieved above 38.2% Fibonacci retracement at 40.20. Therefore, the bullishness is still in favor, supported by the bullish channel with a support at 39.25.
The trading range for today is among the key support at 38.15 and key resistance now at 42.05.
The general trend over short term basis is neutral until we see how the metal will behave around 42.05-42.30 zones.
| Support | 40.20 | 39.85 | 39.25 | 39.05 | 38.65 |
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| Resistance | 40.60 | 40.80 | 40.95 | 41.35 | 41.50 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying silver around 40.30 gradually targeting 40.80, 41.50 and 42.05 , while the stop loss is a four hour closing below 39.05 might be appropriate. | ||||