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Technical Precious Metals
Written by article default Thursday, 07 July 2011 08:09
Morning Report
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It seems that a harmonic 5-0 pattern possibility since the bullishness was clear. The BC leg is in progress which is the bigger leg where the C point should reside at 1536.00 or 1558.00 zones. Those levels are 161.8% and 224% projection of AB leg, while 200% is seen at 1550.00 as seen on the provided graph. We believe that the bullishness will continue towards the aforesaid levels, but this bullishness will be followed by 50% retracement of BC leg.
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 | 1523.00 | 1513.00 | 1505.00 | 1492.00 | 1488.00 |
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| Resistance | 1532.00 | 1536.00 | 1545.00 | 1550.00 | 1558.00 |
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| Recommendation | Based on the charts and explanations above, the bullishness is in favor but we are forced to stay aside since risk versus reward ratio is too high. | ||||
Silver
Morning Report
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Silver is presently hovering around the PRZ of the suggested Bat pattern and momentum indicators show that the pattern has been completed. Stability below 36.35 suggests a bearish direction over intraday basis. Conversely, if we witnessed a four hour closing above 36.75 the second scenario of CRAB with D2 will be our scenario.
The trading range for today is among the key support at 33.90 and key resistance now at 37.85.
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 | 35.90 | 35.20 | 35.00 | 34.70 | 34.35 |
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| Resistance | 36.35 | 36.75 | 37.00 | 37.45 | 37.85 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 36.15 gradually targeting 35.20 and 34.50, while the stop loss is a four hour closing above 36.75 might be appropriate. | ||||
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