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Technical Precious Metals
Written by article default Tuesday, 05 July 2011 08:19
Morning Report
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The mild upside actions seen on the chart has taken gold towards overbought areas. Additionally, the psychological level of 1500.00 represents a reasonable resistance. In general, trading below 61.8% of CD leg for the bearish harmonic structure makes us suggest a potential downside wave, attempting to achieve more extended technical objectives for the harmonic formation. Note that breaching 1513.00 over four hour interval or breaching 1505.00 with a daily closing could send the metal higher towards 1525.00 zones.
The trading range for today is among the key support at 1468.00 and key resistance now at 1525.00.
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 | 1500.00 | 1505.00 | 1510.00 | 1513.00 | 1516.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1500.00 gradually targeting 1488.00 and 1477, while the stop loss is a daily closing above 1505.00 might be appropriate. | ||||
Silver
Morning Report
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It seems that the metal doesn’t have the ability to stabilize above 34.3; whilst Stochastic is showing bearish tendency. Those technical factors are confirmations that the B point of the harmonic formation represents a solid resistance. Stability below this point makes us suggest possible bearishness to continue forming the CD leg of the pattern; noting that, it could be a butterfly pattern due to the symmetry connecting its Fibonacci corrections. The completion of the aforesaid pattern resides at 31.35 but areas of 35.15 should hold to protect this harmonic scenario. A daily closing above 35.65 will negate the bearishness over intraday basis.
The trading range for today is among the key support at 32.45 and key resistance now at 36.00.
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 | 33.60 | 33.30 | 33.10 | 33.00 |
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| Resistance | 34.35 | 34.70 | 35.15 | 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 33.60,33.05 and 32.45, while the stop loss is a four hour closing above 35.15 might be appropriate. | ||||