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Technical Precious Metals
Written by article default Thursday, 26 May 2011 09:37
Morning Report
Gold consolidated above 1523.00 accompanied by a positive crossover attempt on Stochastic. Despite RSI entering overbought areas, the third wave is known for resisting this pressure; the metal is now trading with the third wave of the higher fifth as shown above and accordingly we expect further intraday upside movement for today.
The trading range for today is among the key support at 1500.00 and key resistance now at 1556.00.
The short-term trend is to the upside targeting 1600.00 per ounce as far as areas of 1430.00 remain intact.
| Support | 1523.00 | 1513.00 | 1505.00 | 1500.00 | 1494.00 |
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| Resistance | 1530.00 | 1537.00 | 1545.00 | 1549.00 | 1556.00 |
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| Recommendation | Based on the charts and explanations above our opinion is buying gold around 1523.00 and take profit in stages at 1537.00, 1545.00 and 1.556.00 and stop loss with daily closing below 1505.00 might be appropriate | ||||
Silver
Morning Report
Silver failed in forming the AB=CD bullish pattern yesterday, yet we can see the metal approaching the full weekly targets set. We will reconsider the Elliot waves and see that the metal is approaching 38.2% Fibonacci of the IM that formed the A wave. Breaching areas of 38.80-39.10 will extend the upside move towards 40.85, while failure in doing so will pressure the metal into a downside correction and especially with the buying saturation on momentum indicators. Therefore, we remain neutral for today and recommend returning to our weekly report for more details.
The trading range for today is among the key support at 36.15 and key resistance now at 1840.8590.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 38.10 | 37.45 | 36.80 | 36.15 | 35.85 |
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| Resistance | 38.80 | 39.10 | 39.75 | 40.20 | 40.85 |
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| Recommendation | Based on the charts and explanations above we recommend observing trading today awaiting more confirmations | ||||
