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Technical Precious Metals
Written by article default Monday, 23 May 2011 07:49
Weekly Report 23/5 – 27/ 05/ 2011
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Our previous suggested Elliott count is still valid as it proved its efficiency with the sharp incline on Friday. The fifth wave has started with stability above the support line at 1486.00. Stochastic reflects overbought case and that may cause some kind of fluctuation but breaching through 1523.00 will assist the metal to incline more and ignore this negative sign.
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 | 1500.00 | 1494.00 | 1486.00 | 1480.00 | 1474.00 |
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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 1500.00 gradually targeting 1523.00,1537.00 and 1556.00, while the stop loss is a daily closing below 1474.00 might be appropriate. | ||||
Silver
Weekly Report 23/5 – 27/ 05/ 2011
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Silver inclined after touching 34.35 as we suggested in our previous harmonic scenario which we will discuss in the coming report. Now, the proposed Elliott sequence shows that B of ZZ wave is in progress. Touching 36.35 is possible and a break of which will bring more buying pressures towards 38.90. Stability with daily closing above 33.05 is required and preferably above 33.90 zones.
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 | 34.85 | 33.90 | 33.75 | 33.05 | 32.85 |
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| Resistance | 34.85 | 35.35 | 35.50 | 36.40 | 36.90 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying silver around 34.50 gradually targeting 36.35,37.20 and 38.90 , while the stop loss is a daily closing below 33.05 might be appropriate. | ||||
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