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Technical Precious Metals
Written by article default Friday, 24 June 2011 08:48
Morning Report
The downside move for gold drove the metal back towards 1522.00, and we mentioned before how critical this level is and considered the separating barrier from the negativity for gold. The failure to stabilize above 1549.00 after reaching 1556.00 is the reason for the downside move after breaching 1537.00. We remain neutral on the metal today and observe the price behavior around the critical 1522.00 areas.
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 | 1513.00 | 1505.00 | 1500.00 | 1494.00 | 1488.00 |
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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 we recommend observing trading today awaiting more confirmations | ||||
Silver
Morning Report
The sharp downside move confirms that the metal is indeed trading in the bearish C wave, and currently returned around 35.00 areas, the critical barrier over intraday basis for today. The four-hour closing below this level will extend the downside move, and that is what we expect indeed for silver today to continue the bearishness depending on the Elliot scenario shown above.
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 | 35.00 | 34.80 | 34.50 | 34.35 | 33.90 |
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| Resistance | 35.65 | 36.00 | 36.15 | 36.35 | 36.80 |
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| Recommendation | Based on the charts and explanations above our opinion is selling silver around 35.65 and take profit in stages at 34.80, 33.90, 33.05 and stop loss with daily closing above 36.35 might be appropriate | ||||
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