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Technical Precious Metals
Written by article default Friday, 03 June 2011 08:13
Morning Report
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Yesterday's sharp decline couldn’t take the metal below 1519.00 zones which were touched without being breached. Bouncing from there again proved the importance of these levels which support the bullish scenario. The harmonic pattern still suggests bearish continuation to continue forming the CD leg which might be completed around 1562.00-1564.00. Stability above 1532.00 followed by 1540.00 is essential to confirm our scenario.
The trading range for today is among the key support at 1505.00 and key resistance now at 1564.00.
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 | 1523.00 | 1519.00 | 1513.00 | 1505.00 | 1500.00 |
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| Resistance | 1537.00 | 1540.00 | 1545.00 | 1549.00 | 1556.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold with a four hour closing 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 major support line and 23.6% at 36.354 were breached. This breakout confirms our bearish suggestions targeting 34.80 where a break of which will bring additional bearishness. It seems as if we face a TZ formation but it is not confirmed yet. Momentum indicators are showing oversold signs but we don’t think it will change the scenario.
The trading range for today is among the key support at 33.05 and key resistance now at 38.00.
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 | 35.65 | 35.00 | 34.80 | 34.35 | 34.00 |
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| Resistance | 36.15 | 36.35 | 36.80 | 37.10 | 37.45 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 36.35 gradually targeting 35.65,34.80 and 33.90 , while the stop loss is a daily closing above 37.45 might be appropriate. | ||||