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Technical Precious Metals
Written by article default Wednesday, 15 June 2011 08:15
Morning Report
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Gold inclined mildly trading above 38.2% Fibonacci of CD leg for the bearish harmonic Gartley pattern. This incline threatens the pattern, remind you of the harmonic Bat probability. We need more confirmations since trading above 38.2% may indicate that the first target of Gartley could limit its effect; whilst stabilizing below the aforesaid correctional level will be a sign that the bearish affect will continue. Thereby, we prefer staying aside over intraday basis after achieving a huge part of our anticipations started with the end of the past week. Ultimately, let us see how gold will behave around 1522.00 levels.
The trading range for today is among the key support at 1505.00 and key resistance now at 1556.00.
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 | 1522.00 | 1519.00 | 1513.00 | 1505.00 | 1500.00 |
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| Resistance | 1532.00 | 1537.00 | 1549.00 | 1556.00 | 1562.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||
Silver
Morning Report
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Silver inclined slightly after touching the initial support around 34.35, while Stochastic started to enter overbought areas attempting to overlap negatively. Thus, the efficiency of the suggested Elliott count seen on the provided image remains intact. Consequently, we expect a bearish direction over intraday basis which will be confirmed with a four-hour closing below 35.00 zones.
The trading range for today is among the key support at 33.05 and key resistance now at 37.45.
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 | 35.00 | 34.80 | 34.50 | 34.35 | 33.90 |
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| Resistance | 35.65 | 36.15 | 36.35 | 36.80 | 37.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver below 35.00 gradually targeting 33.90 and 33.05 , while the stop loss is a daily closing above 36.35 might be appropriate. | ||||
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