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Technical Precious Metals
Written by article default Friday, 17 June 2011 08:19
Morning Report
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Gold moved within a very tight range since yesterday but this range resides above 38.2% Fibonacci retracement of CD leg for the bearish harmonic Gartley pattern at 1522.00. At the same time, RSI became neutral, while Stochastic attempted to show negative sign despite stabilizing above value of 50.00. Thereby, we hold onto our neutral anticipations for the consecutive third day until we get a clearer sign to pinpoint the intraday direction.
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 is showing bearish tendency but until now it couldn't achieve a four hour closing below 35.00 zones since yesterday. The proposed Elliott count remains valid as we believe that C wave of ZZ formation is in progress for the time being. Consequently, we keep our negative scenario intact and a break of 35.00 will confirm it.
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. | ||||