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Technical Precious Metals
Written by article default Friday, 20 May 2011 08:03
Morning Report
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Trading continued between 1488.00 and 1505.00 zones following the double ZZ wave. We keep our bullish anticipations intact since trading is still above the uptrend line. This scenario is supported by the suggested Elliott count and the positivity on Stochastic.
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 | 1505.00 | 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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The correction was limited at 38.2% Fibonacci of BC leg of 5-0 pattern and it didn't reach 50% level at 34.35 zones. The rules of this aforesaid pattern are clear and we need to see the price around 50% to clarify that the pattern is completed. We still see chances for more upside actions over intraday basis but 34.50-34.35 could be retested first to approve the "5-0" pattern.
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. | ||||