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Technical Precious Metals
Written by article default Monday, 27 June 2011 09:25
Weekly Report 27/06 – 01/ 07/ 2011
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Gold slipped violently towards 61.8% of the suggested harmonic structure. This harmonic formation could be Gartley pattern and also very close to be Bat but it couldn’t reach 1563.00 to confirm the Bat and couldn't stabilize below 1549.00 to confirm the first shape. Actually, this harmonic formation was efficient enough to push the metal lower below 61.8% at 1505.00. Thus, the path is cleared towards 76.4% of CD leg at 1492.00 which will define the direction for this week. Momentum indicators reflect clear oversold signs contradicting with the bearish tendency and therefore, we prefer staying aside until we see how the metal will behave between 1505.00 and 1492.00.
The trading range for this week is among the key support at 1462.00 and key resistance now at 1549.00.
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 | 1492.00 | 1488.00 | 1480.00 | 1477.00 | 1474.00 |
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| Resistance | 1505.00 | 1513.00 | 1525.00 | 1532.00 | 1537.00 |
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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
Weekly Report 27/06 – 01/ 07/ 2011
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The bearishness continued dominating the movements since the suggested Elliott sequence has proved its efficiency as we believe that we are witnessing C wave of the ZZ formation. Momentum indicators are showing oversold signs and that might cause huge fluctuation but trading below 34.50 will bring additional negative actions. Stability below 33.05 will solidify our Elliott scenario.
The trading range for this week is among the key support at 29.80 and key resistance now at 36.35.
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 | 33.90 | 33.30 | 33.00 | 32.80 | 32.45 |
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| Resistance | 34.35 | 34.50 | 35.00 | 35.65 | 36.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 34.35 gradually targeting 33.05,32.45 and 31.25, while the stop loss is a daily closing below 35.65 might be appropriate. | ||||