Members login
Technical Precious Metals
Written by article default Wednesday, 04 May 2011 09:59
Morning Report
Click on the image for a larger view
Gold declined gradually yesterday, breaching 1537.00 level -23.6%- of the third wave of the proposed Elliott count. This breakout argued us to say that the bearishness will continue over intraday basis, targeting 1513.00 -38.2%- Fibonacci of the aforementioned wave. Stability below 1556.00 is required to keep this scenario valid; whilst breaching through 1575.00 will damage it. Momentum indicators show bearish tendency confirming our expectations.
The trading range for today is among the key support at 1505.00 and key resistance now at 1565.00.
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.
| Support | 1530.00 | 1523.00 | 1514.00 | 1505.00 | 1500.00 |
|
|
|||||
| Resistance | 1537.00 | 1545.00 | 1549.00 | 1556.00 | 1560.00 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1537.00 gradually targeting 1523.00,1513.00 and 1505.00, while the stop loss is a four hour closing above 1556.00 might be appropriate. | ||||
Silver
Morning Report
Click on the image for a larger view
The intraday targets have been reached and the metal is now trading around the support line that organized the IM structure. In fact, the truncated fifth wave suggests that the current correction might be aggressive and extended but we need more confirmation via breaching 40.85 zones. This level represents 38.2% Fibonacci. To conclude, we still believe that the bearishness will continue but not before breaching 40.85 zones.
The trading range for today is among the key support at 38.10 and key resistance now at 44.30.
The general trend over short term basis is neutral until we see how the price will behave around 42.05-42.30 during this week.
| Support | 41.00 | 40.85 | 40.20 | 39.75 | 38.80 |
|
|
|||||
| Resistance | 41.55 | 41.80 | 42.05 | 42.50 | 43.00 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 41.55 gradually targeting 40.20,39.15 and 38.10, while the stop loss is a daily closing above 43.25 might be appropriate. | ||||