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Technical Precious Metals
Written by article default Wednesday, 25 May 2011 07:37
Morning Report
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The metal is presently trading around 1523.00 which represent the suggested technical objective of our technical reports since last week. Gold resists the overbought signs on momentum indicators which show a divergence case. The impulsive nature of the third wave might continue as we believe that we are witnessing the third of the bigger fifth wave. Some kind of correction might be seen today before resuming the bullishness, supported by stability above 1488.00 over intraday basis. Stabilizing above 1500.00 is generally preferable.
The trading range for today is among the key support at 1500.00 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 of 1430.00 remain intact with weekly closing.
| Support | 1513.00 | 1505.00 | 1500.00 | 1494.00 | 1488.00 |
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| Resistance | 1523.00 | 1530.00 | 1537.00 | 1545.00 | 1549.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1513.00 gradually targeting 1537.00,1545.00 and 1556.00, while the stop loss is a daily closing below 1500.00 might be appropriate. | ||||
Silver
Morning Report
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Level of 36.95 represents 161.8% of CD leg for the suggested Bat pattern and commonly this is the last extended technical target for the harmonic patterns. Stochastic supports the technical idea of visiting this level which was our technical target suggested since two weeks. The bullish effect of the harmonic "5-0" pattern continues and thus, more bullishness could be seen over intraday basis but if it failed to maintain levels above 36.95 with a four hour closing, the bearishness will come back into focus.
The trading range for today is among the key support at 34.85 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 | 36.15 | 35.85 | 35.65 | 35.00 | 34.85 |
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| Resistance | 36.80 | 36.95 | 37.45 | 38.10 | 38.50 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until we see the price behaviors around 36.95. | ||||
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