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Technical Precious Metals
Written by article default Thursday, 12 May 2011 09:20
Morning Report
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Gold declined as we expected reaching the previous suggested former support around 1494.00. Now, we believe that the second wave of the grand fifth wave is in progress. Consequently, potential upside movement might start over intraday basis. Levels between 1494.00 and 1486.00 could be the base to start this aforementioned wave as far as the daily closing remains above 1462.00.
The trading range for today is among the key support at 1455.00 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 | 1500.00 | 1494.00 | 1486.00 | 1480.00 | 1477.00 |
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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 1494.00 gradually targeting 1513.00,1523.00 and 1537.00, while the stop loss is a four hour closing below 1462.00 might be appropriate. | ||||
Silver
Morning Report
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The metal declined respecting yesterday's suggested outlook; we believe that the fifth wave is in progress. It could be a truncated wave since the price is stable above 200% of the first IM wave -colored in dark blue-. Today we prefer to wit until we witness a breakout below 34.80 to confirm resuming the bearishness. A break of which will send the metal towards 33.05 and a break of this level will take us towards 30.30. We recommend reviewing the weekly report for more details about the achieved targets.
The trading range for today is among the key support at 30.25 and key resistance now at 38.50.
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 | 34.80 | 34.00 | 33.75 | 33.05 | 32.45 |
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| Resistance | 35.65 | 35.90 | 36.80 | 37.45 | 38.10 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver with a breakout below 34.80 gradually targeting 33.65,33.05 and 31.25 , while the stop loss is a four hour closing above 36.80 might be appropriate. | ||||