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Technical Precious Metals
Written by article default Saturday, 23 April 2011 11:54
GoldMidday Report
Gold continued moving positively but it couldn't breach through 1508.00, where 200% Fibonacci of BC leg of the bearish harmonic AB=CD pattern exists. We are not sure if the metal will be limited around this level or it will extend towards 224% at 1523.00, noting that CD may extend above 1523.00. Thereby, we hold onto our neutrality for the rest of the day to confirm the PRZ of the pattern.
Note: Momentum indicators reflect clear overbought case and that might confirm the bearish nature of the harmonic pattern but we need a classical pattern or a bearish candlestick formation to confirm this negativity.
The trading range for today is among the key support at 1474.00 and key resistance now at 1554.00.
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 | 1500.00 | 1494.00 | 1485.00 | 1480.00 | 1474.00 |
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| Resistance | 1508.00 | 1514.00 | 1523.00 | 1530.00 | 1546.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||
Silver
Midday Report
From the first detected support of 45.50 zones, the metal moved upwards ignoring the clear overbought sign on momentum indicators. This is an indication that the third wave -colored in green- is still progress within IM formation as seen on the provided chart. The internal fifth wave –rosy count- of the bigger third is extended wave. Therefore, we keep our bullish scenario intact and we recommend reviewing the morning report for more analysis from a classical point of view.
Note: We should be very cautious since the third wave is in its latest stages and we know that silver is famous for its sharp corrections. A daily closing below 44.10 will confirm that the wave was completed.
The trading range for today is among the key support at 43.00 and key resistance now at 47.75.
The general trend over short term basis is neutral until we see how the metal will behave around 42.05-42.30 zones during this week.
| Support | 45.50 | 45.10 | 44.68 | 44.10 | 43.85 |
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| Resistance | 46.10 | 46.55 | 46.85 | 47.30 | 47.75 |
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| Recommendation | Our morning expectations remain valid. | ||||