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Technical Precious Metals
Written by article default Thursday, 09 June 2011 08:16
Morning Report
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Falling sharply from 78.6% Fibonacci retracement of XA leg and coming below 127.2% projection of BC leg at 1542.00 are signs that a bearish harmonic Gartley has been completed earlier. Therefore, we believe that the metal has lost its upside steam and will move lower over intraday basis. Breaching the pivotal support of 1525.00 will triger a panic sell-off towards the technical targets seen on the provided graph. Conversely, areas of 1560.00-1562.00 should hold to protect this scenario.
The trading range for today is among the key support at 1490.00 and key resistance now at 1575.00.
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 | 1531.00 | 1522.00 | 1512.00 | 1502.00 | 1490.00 |
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| Resistance | 1542.00 | 1549.00 | 1553.00 | 1562.00 | 1575.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1539.00 targeting 1502.00 and stop loss above 1562.00 might be appropriate. | ||||
Silver
Morning Report
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From a pure classical point of view, it seems that the metal is drawing a huge bearish pennant pattern over four hour interval. This continuation pattern will be confirmed once its support line is breached; whilst the candlesticks formation is negative and covered by parabolic SAR. Thereby, the bearishness is still in favor over intraday basis.
The trading range for today is among the key support at 33.90 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 |
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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 36.90 targeting 34.15 and stop loss above 38.50 might be appropriate. | ||||