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Technical Precious Metals
Written by article default Monday, 20 June 2011 08:07
Weekly Report (June 20-24, 2011)
Gold stabilized above 1522.00 signaling that it settled for the first target of the bearish Gartly Pattern mentioned before. This move signals that the metal is attempting to complete a harmonic Bat pattern at 1562.00-1565.00 per ounce. Therefore, the metal will attempt to move to the upside this week and this upside move depends on 1522.00 and stability below it supports the likelihood for gold to move to the upside while the breach of 1502.00 might negate the upside move.
The trading range for this week is among the key support at 1495.00 and key resistance now at 1581.00.
The short-term trend is to the upside targeting 1600.00 per ounce as far as areas of 1430.00 remain intact.
| Support | 1532.00 | 1522.00 | 1513.00 | 1505.00 | 1500.00 |
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| Resistance | 1537.00 | 1549.00 | 1556.00 | 1560.00 | 1564.00 |
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| Recommendation | Based on the charts and explanations above our opinion is buying gold around 1523.00 and take profit in stages at 1549.00, 1556.00 and 1564.00 and stop loss with daily closing below 1520.00 might be appropriate this week | ||||
Silver
Weekly Report (June 20-24, 2011)
Silver failed to stabilize above 36.35 supporting the strength of the suggested count that shows the metal is now trading within the bearish wave C of the Zigzag. Therefore, we expect a downside move this week and require stability below the level mentioned and confirmed with four-hour closing below 35.00. Stochastic provided a negative crossover while RSI is attempting to breach the 50 points to the downside supporting our expectations.
The trading range for this week is among the key support at 32.20 and key resistance now at 38.05.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 35.35 | 35.00 | 34.85 | 34.35 | 33.90 |
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| Resistance | 36.00 | 36.35 | 36.85 | 37.00 | 37.45 |
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| Recommendation | Based on the charts and explanations above our opinion is selling silver around 35.85 and take profit in stages at 35.00, 34.35, 33.90 and stop loss with daily closing above 37.40 might be appropriate this week | ||||
