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Technical Precious Metals
Written by article default Wednesday, 27 April 2011 17:44
GoldMidday Report
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Now, we will look at the daily chart from a harmonic point of view, we will find that a bearish harmonic AB=CD might have been completed. Technical objectives of this pattern reside at 1465.00, noting that there is a technical obstacle around 1485.00 and it should be breached to confirm the bearish direction. This pattern added further confirmation for the morning explained Elliott count. Moreover, the negativity is still appearing on momentum indicators. Areas of 1530.00 should hold with four-hour closing to keep this negative overview valid and preferably below 1523.00, where 224% Fibonacci of BC leg exists.
The trading range for today is among the key support at 1474.00 and key resistance now at 1530.00.
The general trend over the short term basis is to the upside targeting 1589.00 per ounce as far as areas of 1430.00 remain intact with weekly closing.
| Support | 1500.00 | 1494.00 | 1485.00 | 1477.00 | 1474.00 |
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| Resistance | 1514.00 | 1523.00 | 1530.00 | 1536.00 | 1546.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1510.00 targeting 1495.00, followed by 1477.00, while the stop loss is a four hour closing above 1430.00 might be appropriate. | ||||
Silver
Midday Report
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The negativity is very clear on the daily chart, while the suggested Elliott count claims that we are currently witnessing the fourth wave, which may send the metal towards 43.85 zones and a break of which will confirm resuming the bearish trend. Note that momentum indicators are negative, particularly RSI which can't come back above 70.00 levels.
The trading range for today is among the key support at 42.10 and key resistance now at 48.90.
The general trend over short term basis is to the upside targeting 50.20 as far as areas of 42.10 remain intact with weekly closing.
| Support | 45.10 | 44.68 | 44.35 | 43.85 | 43.60 |
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| Resistance | 46.00 | 46.55 | 46.85 | 47.30 | 47.75 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 46.55 gradually targeting 45.10, 43.85 and 42.50 , while the stop loss is a daily closing above 48.20 might be appropriate. | ||||