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Technical Precious Metals
Written by article default Tuesday, 31 May 2011 10:30
Morning Report
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The metal is presently trading above 61.8% retracement of XA leg of the suggested harmonic formation which could be completed as a Bat pattern later. CD leg is organized by a classical ascending channel where its support has met the aforesaid 61.8%level. Thereby, more bullishness might be witnessed over intraday basis, targeting 1549.00 followed by 1556.00-1564.00 areas.
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 | 1532.00 | 1523.00 | 1519.00 | 1513.00 | 1505.00 |
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| Resistance | 1545.00 | 1549.00 | 1556.00 | 1562.00 | 1565.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1532.00 gradually targeting 1549.00,1556.00 and 1562.00, while the stop loss is a daily closing below 1519.00 might be appropriate. | ||||
Silver
Morning Report
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The metal is trapped between 23.6% and 38.2% Fibonacci levels of the bearish IM wave. Stochastic shows negative tendency, while RSI is neutral. The suggested Elliott count is still valid but we need to witness stability below 36.35 to confirm it. Hence, we will be neutral for today since trading was trapped within tight range during the previous period.
The trading range for today is among the key support at 35.85 and key resistance now at 40.90.
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 | 37.75 | 37.45 | 36.80 | 36.35 | 36.15 |
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| Resistance | 38.40 | 38.90 | 39.25 | 39.75 | 40.20 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||
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