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Technical Precious Metals
Written by article default Thursday, 23 June 2011 08:37
Morning Report
As expected, gold moved to the upside and was able to reach levels above 1556.00 resistance areas. Currently, the metal returned to hover around 1549.00, the completion levels for the Gartly pattern, and stability above this level supports the upside tendencies to test areas around 1562.00-1565.00 where the harmonic bat pattern will complete. We should observe gold closely when reaching those areas, as the bat pattern is bearish in this case. Our upside expectations for today depend on stability above 1537.00.
The trading range for today is among the key support at 1522.00 and key resistance now at 1575.00.
The short-term trend is to the upside targeting 1600.00 per ounce as far as areas of 1430.00 remain intact.
| Support | 1545.00 | 1537.00 | 1532.00 | 1522.00 | 1519.00 |
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| Resistance | 1549.00 | 1556.00 | 1562.00 | 1565.00 | 1575.00 |
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| Recommendation | Based on the charts and explanations above our opinion is buying gold around 1545.00 and take profit in stages at 1556.00 and 1564.00 and stop loss with daily closing below 1537.00 might be appropriate | ||||
Silver
Morning Report
All the attempts for silver to stabilize above 36.35 with a daily closing failed; and we can see yesterday the metal touched the main resistance for the minor descending channel. Those facts assure that the metal is trading within the bearish C wave of the Zigzag pattern and accordingly silver might move to the downside today, where momentum indicators support our expectations.
The trading range for today is among the key support at 34.50 and key resistance now at 38.90.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 36.00 | 35.65 | 35.00 | 34.80 | 34.50 |
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| Resistance | 36.35 | 36.80 | 37.00 | 37.45 | 37.75 |
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| Recommendation | Based on the charts and explanations above our opinion is selling silver around 36.35 and take profit in stages at 35.00, 34.35, 33.90 and stop loss with four-hour closing above 37.00 might be appropriate | ||||
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