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Technical Precious Metals
Written by article default Tuesday, 07 June 2011 09:44
Morning Report
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Gold is attempting to stabilize above 1549.00 where 76.4% retracement of XA leg of Bat pattern exists and that may push the metal to soar towards the PRZ of the pattern to complete it. Additionally, we can see a bullish channel with a support at 1528.00 solidifying 1532.00 zones; whilst RSI is stable above 50.00. Thereby, we hold onto our bullish predications over intraday basis.
The trading range for today is among the key support at 1513.00 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 of1430.00 remain intact with weekly closing.
| Support | 1537.00 | 1532.00 | 1523.00 | 1591.00 | 1513.00 |
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| Resistance | 1549.00 | 1556.00 | 1562.00 | 1565.00 | 1575.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1540.00 gradually targeting 1556.00,1560.00 and 1581.00, while the stop loss is a daily closing below 1523.00 might be appropriate. This recommendation will be canceled out if the second and third technical targets are reached before the entry point is touched. | ||||
Silver
Morning Report
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After touching the previous broken support -turned into resistance- of the correctional channel which organized B wave, the metal started to move downwards below 36.35 levels. These price behaviors give more confirmations that the ZZ correction is in progress. Consequently, we suggest potential downside move over intraday basis.
The trading range for today is among the key support at 34.00 and key resistance now at 38.90.
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.
Different point of view if 38.40-38.90 are breached
| Support | 36.35 | 36.15 | 35.65 | 35.00 | 34.80 |
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| Resistance | 36.80 | 37.00 | 37.45 | 37.75 | 38.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 37.00 gradually targeting 35.65,34.80 and 33.90 , while the stop loss is a daily closing above 38.00 might be appropriate. | ||||