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Technical Precious Metals
Written by article default Thursday, 30 June 2011 08:40
Morning Report
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Gold inclined as we expected in the previous report after it stabilized above the second technical target of the harmonic Bat pattern. This stability above 1505.00 could be a sign that the bearish effect of the pattern has been stopped at the first extended technical target -76.4%- at 1492.00. Now, the metal is approaching 1516.00 –one of yesterday's suggested targets- where a solid resistance could be seen due to the bearish sign on Stochastic. The aforesaid bearish sign may cause some kind of downside correction but let us say that the metal is currently trading above 61.8% of CD leg. Thereby, we propose potential upside actions targeting 1525.00 where a break of which will clarify that the bearishness of harmonic formation is favor. To recap, we predicate volatile movements before moving higher as far as 1505.00 remains intact.
The trading range for today is among the key support at 1492.00 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 of1430.00 remain intact with weekly closing.
| Support | 1510.00 | 1505.00 | 1500.00 | 1492.00 | 1488.00 |
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| Resistance | 1516.00 | 1525.00 | 1532.00 | 1537.00 | 1545.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1510.00 gradually targeting 1516.00 and 1525.00, while the stop loss is a daily closing below 1505.00 might be appropriate. | ||||
Silver
Morning Report
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We are forced to reconsider our suggested Elliott count since stability above 34.35 has weakened yesterday's discussed harmonic pattern. We will use the classical studies today until the metal introduces an actionable Elliott or harmonic sign where we can see a bearish channel with stability above SMA 50 at 34.85. Furthermore, the price is stable above the support of 34.70 but Stochastic shows overbought signs and MACD attempts to be positive without clear confirmation. Therefore, we will be neutral for today until we get a clearer technical sign.
The trading range for today is among the key support at 33.30 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 | 34.70 | 34.35 | 33.90 | 33.60 |
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| Resistance | 35.65 | 36.000 | 36.35 | 36.80 | 37.45 |
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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. | ||||