Members login
Technical Precious Metals
Written by article default Wednesday, 06 July 2011 08:04
Morning Report
Click on the image for a larger view
Gold inclined aggressively yesterday taking the metal above 1505.00 zones. The bearish effect of the harmonic pattern which dominated the wave form 1558.00 to 1477.00 becomes weaker. Now, the metal is attempting to breach 1516.00 zones which could define the next move. We know that it is earlier to discuss the harmonic probability of forming the bullish harmonic 5-0 pattern but the signs if this pattern started to appear where 1536.00 could be tested and may be 1558.00 to form the BC leg. Momentum indicators reflect overbought case making it difficult to surpass A point. Thereby, we prefer staying aside over intraday basis until a clearer sign appears to pinpoint the next big move.
The trading range for today is among the key support at 1488.00 and key resistance now at 1536.00.
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 | 1513.00 | 1505.00 | 1500.00 | 1492.00 | 1488.00 |
|
|
|||||
| Resistance | 1516.00 | 1525.00 | 1532.00 | 1536.00 | 1545.00 |
|
|
|||||
| 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
Morning Report
Click on the image for a larger view
Until this moment, we didn't see stability with four-hour closing above 35.65; thus, the bearishness is still valid despite that the harmonic structure used during the previous period became weaker. Silver is very close to the main resistance line; whilst momentum indicators reflect obvious overbought case. Therefore, the bearishness may dominate the movements once more if the metal came below 35.00-34.70 zones. Conversely, breaching 35.65 with a four-hour closing will weaken the bearish predictions and breaching 36.65 will cancel it out. We remain neutral watching the price behaviors around 35.65.
The trading range for today is among the key support at 33.90 and key resistance now at 37.75.
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 |
|
|
|||||
| Resistance | 35.90 | 36.15 | 36.35 | 36.80 | 37.00 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||
|
