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Technical Precious Metals
Written by article default Friday, 13 May 2011 08:02
Morning Report
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The correction took the shape of ZZ and we believe now a new Iimpulsive wave (IM) has started. This suggested Elliott count will remain valid as far as trading continues above 1462.00 and preferably above 1480.00 areas with four hour closing. Breaching 1507.00 levels will take us towards 1523.00 and a break of which will be a positive motive. All of us know that the third wave is always the sharpest and longest -in many cases- compared with other IM waves. Thereby, the bullishness will be in favor today.
The trading range for today is among the key support at 1462.00 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 | 1480.00 | 1477.00 | 1474.00 |
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| Resistance | 1507.00 | 1513.00 | 1523.00 | 1537.00 | |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1505.00 gradually targeting 1523.00,1537.00 and 1556.00, while the stop loss is a four hour closing below 1480.00 might be appropriate. | ||||
Silver
Morning Report
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The structure of the fifth wave is not clear but we see silver trading below 34.80 zones. There are worries about the fifth since it may be short after achieving the first and second technical targets of the bearish wave. Although there are technical attempts to move downwards once more but we prefer staying aside today until the structure of the fifth wave becomes clearer.
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 | 34.00 | 33.75 | 33.30 | 33.05 | 32.45 |
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| Resistance | 34.80 | 35.10 | 35.65 | 35.90 | 36.80 |
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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. | ||||