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Technical Precious Metals
Written by article default Friday, 06 May 2011 09:17
Morning Report
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The metal has moved flawlessly according to our previous report via touching 1513.00 zones at 2:00 GMT then moved towards the suggested technical targets easily. Now, the price is hovering around sensitive areas around 1475.00 and they extend to 1445.00. These levels will be able to judge if the suggested Elliott scenario is valid and thus, we will move higher or we need another scenario to continue moving bearishly. Momentum indicators are showing oversold signs while the metal is rebounding from the support line that carried the IM wave from 1307.00. To conclude, we expect bullish movements over intraday basis for today and also during the upcoming period. Conversely, a breakout below 1445.00 will damage these expectations and will force us to change the scenario, noting that 1462.00 could weaken the bullish possibility.
The trading range for today is among the key support at 1435.00 and key resistance now at 1537.00.
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 | 1477.00 | 1474.00 | 1468.00 | 1462.00 | 1455.00 |
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| Resistance | 1494.00 | 1500.00 | 1505.00 | 1513.00 | 1523.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1480.00 gradually targeting 1500.00,1505.00 and 1532.00, while the stop loss is a four hour closing below 1445.00 might be appropriate. | ||||
Silver
Morning Report
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The internal third wave of the bigger third wave of the IM has extended sharply. This formation is following a Zig Zag formation but let us make it simple since we believe that the metal will fluctuate with a tendency to the downside then it will move higher. Anyway, the bearishness is still in favor but we prefer staying aside today as silver has reached all the suggested technical targets during this week, noting that risk versus reward ratio is too high and we also need to confirm the count over intraday basis.
The trading range for today is among the key support at 31.00 and key resistance now at 39.15.
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 | 34.00 | 33.75 | 33.30 | 32.80 | 32.20 |
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| Resistance | 35.65 | 36.10 | 36.50 | 36.80 | 37.45 |
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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. | ||||