Members login
Technical Precious Metals
Written by article default Wednesday, 08 June 2011 08:24
Morning Report
Click on the image for a larger view
The metal is finding difficulties in surpassing 1549.00 -76.4% Fibonacci level of XA leg for the harmonic structure- which could be a Bat pattern. It is important to see gold stabilizing above the aforesaid level to be able to reach the PRZ at 1562.00-1565.00-. Stable move above 1532.00 keeps the bullishness valid; whilst the failure could occur once 1519.00 is breached. Anyway, the bullishness is in favor 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 | 1519.00 | 1513.00 |
|
|
|||||
| Resistance | 1549.00 | 1556.00 | 1562.00 | 1575.00 | 1580.00 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1537.00 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
Click on the image for a larger view
Once more, silver couldn't stabilize above the previous broken support encouraging us to hold onto our negative predictions over intraday basis supported by the proposed Elliott count seen on the image where we are forming C wave of ZZ formation. Stochastic came back below 50.00 such like RSI, supporting the negative scenario. A four hour closing below 36.35 will solidify our outlook.
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.
| Support | 36.35 | 36.15 | 35.65 | 35.00 | 34.80 |
|
|
|||||
| Resistance | 37.00 | 37.45 | 37.75 | 38.00 | 38.40 |
|
|
|||||
| 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. | ||||