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Technical Precious Metals
Written by article default Friday, 08 July 2011 11:24
Midday Report
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The sideways trading between 127.2% and 161.8% of AB leg for the harmonic structure continues, while 161.8% at 1536.00 hasn't been touched until now. Therefore, the pattern isn’t completely confirmed forcing us to stay aside for the rest of the day, noting that the NFP release may give a sign for the next move.
The trading range for today is among the key support at 1500.00 and key resistance now at 1558.00.
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
Midday Report
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Let us have a look at the suggested harmonic BAT pattern closely, where we will see ideal corrections for its legs except CD leg which extended mildly above 88.6% Fibonacci of XA leg making the entire structure acceptable as far as we don’t witness a breakout above X point. Momentum indicators support the bearish harmonic formation, while stability below 36.35 confirms it. In result, we keep our morning predictions intact as far as we don't witness a four hour closing above 37.85 zones.
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 | 35.65 | 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 | Our morning expectations remain valid. | ||||