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Technical Precious Metals
Written by article default Friday, 10 June 2011 07:42
Morning Report
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The metal is currently consolidating below the PRZ of the suggested bearish harmonic Gartley pattern as seen on the provided graph. The psychological level of 1550.00 sent it lower once more activating a negative crossover on Stochastic. Thereby, we believe that the gathering momentum process has been completed to take gold towards the projected technical objectives seen above. Areas of 1562.00-1564.00 should protect this negative scenario.
The trading range for today is among the key support at 1502.00 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 of 1430.00 remain intact with weekly closing.
| Support | 1539.00 | 1531.00 | 1522.00 | 1512.00 | 1502.00 |
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| Resistance | 1549.00 | 1553.00 | 1562.00 | 1575.00 | 1580.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1545.00 targeting 1512.00 and stop loss above 1562.00 might be appropriate. | ||||
Silver
Morning Report
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Although the metal has moved mildly upwards but we can see how the resistance line of the proposed huge pennant pattern represents a barrier that could force it to move downwards once more. In the interim, Stochastic started to be negative within overbought areas. Thereby, we believe that the bearishness will dominate the movements over intraday basis but not before breaching 36.90 areas.
The trading range for today is among the key support at 34.25 and key resistance now at 39.75.
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 | 36.90 | 36.35 | 36.15 | 35.65 | 35.00 |
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| Resistance | 34.75 | 38.00 | 38.40 | 39.25 | 39.75 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver with a breakout below 36.90 targeting 34.15 and stop loss above 38.50 might be appropriate. | ||||