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Technical Precious Metals
Written by article default Monday, 16 May 2011 09:05
Weekly Report 16/05 – 20/ 05/ 2011
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The provided four hour graph shows the probability that the fifth wave is still in progress. Stability above the support line along with the suggested Elliott count are two reasons that make us propose a bullish trend during this week. Two conditions are required to confirm this bullishness as follows:
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Stabilizing above 1462.00 with a daily closing to make the Elliott count valid.
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Stabilizing above 1445.00 with a daily closing to make the major uptrend valid.
The trading range for this week is among the key support at 1420.00 and key resistance now at 1575.00.
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 | 1480.00 | 1477.00 | 1468.00 | 1460.00 | 1455.00 |
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| Resistance | 1505.00 | 1513.00 | 1523.00 | 1530.00 | 1537.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1488.00 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 16/05 – 20/ 05/ 2011
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Stability above 33.05 is a reasonable factor that makes us suggest that A wave of the ZZ wave has ended. Forming internal five waves is required to confirm this technical idea. To recap, we may witness a bullish correction during this week and we need to see the price above 34.85 zones to solidify this Elliott count. In general, stability above 33.05 makes it valid.
The trading range for this week is among the key support at 30.30 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 | 34.15 | 33.95 | 33.75 | 33.05 | 32.45 |
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| Resistance | 34.85 | 35.35 | 35.50 | 36.45 | 36.90 |
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| Recommendation | Based on the charts and explanations above our opinion is buying silver around 34.15 gradually targeting 36.35,38.90 and 40.90 , while the stop loss is a daily closing below 33.05 might be appropriate. | ||||