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Technical Precious Metals
Written by article default Monday, 09 May 2011 09:43
Weekly Report 09/05 – 13/ 05/ 2011
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The metal succeeded in moving higher according to Friday's scenario where it touched the first and second technical targets after achieving the suggested bearishness during the previous week. These movements make us trust our proposed Elliott scenario more but we are not sure that the internal count -red arrow- is correct enough. Anyway, we still see chances for the bullish movements that will be proven with stability above 1523.00 zones.
The trading range for this week is among the key support at 1445.00 and key resistance now at 1600.00.
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 | 1500.00 | 1494.00 | 1480.00 | 1474.00 | 1468.00 |
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| Resistance | 1513.00 | 1523.00 | 1530.00 | 1537.00 | 1545.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1594.00 gradually targeting 1523.00,1537.00 and 1550.00, while the stop loss is a daily closing below 1460.00 might be appropriate. | ||||
Silver
Weekly Report 09/05 – 13/ 05/ 2011
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The current bearish wave is not just a correction for the upside rally from 26.36 but it seems that we are facing a corrective direction of the bigger time intervals for the upside wave started in 2008. Let us focus on the internal count of the present bearish wave where we suggest a new IM wave of a bigger ZZ wave. To recap, as far as trading remains below 42.10 zones, the bearishness will continue and stability below 39.10 will strengthen this negative scenario. Carefully note that silver is drawing the fourth wave and it is an upside wave that will relax momentum indicators before the possible bearish direction.
The trading range for this week is among the key support at 31.40 and key resistance now at 42.65.
The general trend over short term basis is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 35.50 | 35.35 | 35.00 | 34.60 | 34.30 |
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| Resistance | 36.45 | 36.90 | 37.20 | 37.60 | 38.05 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 39.10 gradually targeting 36.35,34.60 and 33.05 , while the stop loss is a daily closing above 42.10 might be appropriate. | ||||
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