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Technical Precious Metals
Written by article default Thursday, 28 April 2011 12:01
GoldMorning Report
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Gold is trading above very sensitive levels and reconsidering our previous suggested Elliott count will prove that the third wave of the IM wave might extend higher and after that it will be followed by the fourth wave which we think it will be weak. Touching areas of 1556.00 became available and thus, the bullishness is in favor over intraday basis as far as the price stabilizes above 1530.00 zones.
The trading range for today is among the key support at 1500.00 and key resistance now at 1556.00.
The general trend over the short term basis is to the upside targeting 1600.00 per ounce as far as areas of 1430.00 remain intact with weekly closing.
| Support | 1523.00 | 1514.00 | 1505.00 | 1500.00 | 1494.00 |
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| Resistance | 1536.00 | 1540.00 | 1545.00 | 1549.00 | 1556.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1523.00 targeting 1546, followed by 1556.00, while the stop loss is a four hour closing below 1505.00 might be appropriate. | ||||
Silver
Morning Report
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The metal ignored the negativity of momentum indicators and incline sharply. In fact, we are facing a famous case, where RSI shows overbought signs but the positivity continues as seen on the provided chart. Stochastic became positive once more; whilst yesterday's candlestick gave us the impression 161.8% Fibonacci will be visited at 50.25 zones. Our Elliott count suggests that the fourth wave was limited earlier and we entered a new IM wave.
The trading range for today is among the key support at 44.85 and key resistance now at 52.10.
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 | 48.20 | 47.75 | 47.30 | 46.85 | 46.55 |
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| Resistance | 48.90 | 49.50 | 50.00 | 50.25 | 50.80 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying silver around 48.20 gradually targeting 49.50 and 50.25 , while the stop loss is a daily closing below 47.20 might be appropriate. | ||||