Members login
Technical Precious Metals
Written by article default Tuesday, 10 May 2011 08:26
Morning Report
Click on the image for a larger view
We are still waiting for a bearish correction as the correction was limited around 1498.00 zones where it rebounded as seen on the provided image. Stochastic reflects an obvious overbought case but the internal count for the wave started at 1462.00 seems as an IM wave. Actually, there is a rational connection between this internal count and the count discussed in the weekly report. Therefore, we may witness a mild downside correction before moving positively once more.
The trading range for today is among the key support at 1474.00 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 with weekly closing.
| Support | 1505.00 | 1500.00 | 1494.00 | 1480.00 | 1477.00 |
|
|
|||||
| Resistance | 1513.00 | 1523.00 | 1530.00 | 1537.00 | 1545.00 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1594.00 gradually targeting 1513.00,1523.00 and 1537.00, while the stop loss is a four hour closing below 1460.00 might be appropriate. | ||||
Silver
Morning Report
Click on the image for a larger view
Silver is currently approaching 38.2% Fibonacci of the third wave at 38.50 zones. It seems that we are facing potential TZ case for the correction that will form the fourth wave. The red arrow of the secondary wave is the proof of this corrective structure. The fifth wave will start sooner and therefore, possible downside movements could be witnessed over intraday basis as far as trading continues below 38.50 and 40.20 zones.
The trading range for today is among the key support at 33.05 and key resistance now at 41.85.
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 | 37.45 | 36.80 | 35.90 | 35.65 | 35.10 |
|
|
|||||
| Resistance | 38.10 | 38.85 | 39.10 | 39.75 | 40.20 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 38.00 gradually targeting 36.45,35.65 and 34.00 , while the stop loss is a four hour closing above 40.20 might be appropriate. | ||||