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Technical Precious Metals
Written by article default Thursday, 05 May 2011 09:34
Morning Report
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Gold succeeded in touching yesterday's proposed levels mentioned in the weekly report. Now, Stochastic is showing oversold signs, while gold stabilized above 38.2% of the third wave at 1513.00. More declines could be seen within the fourth wave but the candlesticks structure above 38.2% -secondary image- alongside the positivity of Stochastic are rational reasons that argue us to be neutral until we see how the price will behave around the current levels.
The trading range for today is among the key support at 1475.00 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 of1430.00 remain intact.
| Support | 1513.00 | 1505.00 | 1500.00 | 1494.00 | 1485.00 |
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| Resistance | 1523.00 | 1530.00 | 1537.00 | 1545.00 | 1549.00 |
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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
Morning Report
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The sharp bearishness prevailed as expected since the current corrective wave is still dominating the movements, particularly after breaching the uptrend line that carried the movements of the IM wave. Now, Stochastic needs some kind of relaxation; whilst RSI is showing positive tendency. Thereby, some kind of correction might be seen to retest the previous broken trend line before moving downwards once more. Anyway, we will be neutral for the time being until momentum indicators unload the oversold signs. In the midday report, we will introduce an Elliott study about the bearish wave that occurred during the previous period!
The trading range for today is among the key support at 36.80 and key resistance now at 43.10.
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 | 39.15 | 38.80 | 38.10 | 37.80 | 37.45 |
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| Resistance | 39.75 | 40.20 | 40.85 | 41.00 | 41.55 |
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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. | ||||