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Technical Precious Metals
Written by article default Thursday, 19 May 2011 10:04
Morning Report
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Once again, the metal shows upside tendencies and it started to stabilize around 1500.00 levels. A break of 1505.00-1507.00 will be a motive that will send it higher, supported by the suggested Elliott count. On the other hand, stability above 1462.00 is required to protect this overview. RSI stabilized above 50.00, while Stochastic is attempting to be positive despite being close to overbought areas.
The trading range for today is among the key support at 1462.00 and key resistance now at 1537.00.
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 | 1494.00 | 1488.00 | 1480.00 | 1477.00 | 1474.00 |
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| Resistance | 1500.00 | 1507.00 | 1513.00 | 1523.00 | 1530.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1488.00 gradually targeting 1505.00,1523.00 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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Influenced by the Bat pattern, the metal inclined towards the extended technical targets at 35.80 and 36.15. These levels might represent C point of "5-0" pattern as stability above 161.8% of AB leg will call for 200% and 224% according to the harmonic rules. Probably, we will witness a downside correction towards 34.50-34.35 areas to complete D level of "5-0" pattern before moving higher again. Breaching through 36.15 will bring additional bullishness since 5-0 pattern will fail.
The trading range for today is among the key support at 32.20 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 | 34.85 | 34.50 | 34.35 | 34.00 | 33.60 |
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| Resistance | 35.65 | 35.85 | 36.15 | 36.80 | 37.45 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying silver around 34.50 gradually targeting 35.85,36.15 and 37.45 , while the stop loss is a daily closing below 33.60 might be appropriate. | ||||