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Technical Precious Metals
Written by article default Monday, 11 July 2011 09:15
Weekly Report 11/07 – 15/ 07/ 2011 
Gold inclined trading inside the rational levels where the BC leg of our proposed harmonic 5-0 pattern could be completed. This leg should be seen around 100% or 161.8% of AB leg and shouldn’t surpass 224% at 1558.00. This leg is followed by a bounce to 50% Fibonacci retracement of BC leg. Thereby, we believe that more upside attempts could be seen but since trading is stable below 1558.00, the bearishness will come back into focus temporarily.
The trading range for this week is among the key support at 1500.00 and key resistance now at 1580.00.
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 | 1536.00 | 1532.00 | 1525.00 | 1513.00 | 1505.00 |
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| Resistance | 1550.00 | 1558.00 | 1562.00 | 1565.00 | 1575.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1500.00 gradually targeting 1532.00and 1523.00, while the stop loss is a four hour closing above 1558.00 might be appropriate. | ||||
Silver
Weekly Report 11/07 – 15/ 07/ 2011
The metal is threatening 36.75 levels without achieving a four hour closing above them. Stochastic is showing tendency to form a negative divergence with a bearish overlapping sign occurred with the opening of today's trading. Coming beneath 36.35 may prove the bearish predictions of the BAT pattern which is atypical pattern, particularly its CD leg. Stability above 36.75 would trigger a bullish wave targeting 37.75, followed by 39.00 zones where a CRAB pattern will be completed. As for now, we will hold onto our bearish predictions since we didn’t get a four hour closing above 36.75 and we need a break back below 36.35 to confirm our outlook.
The trading range for this week is among the key support at 33.30 and key resistance now at 38.40.
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 | 36.35 | 36.00 | 35.65 | 35.00 | 34.50 |
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| Resistance | 36.75 | 37.00 | 37.45 | 37.75 | 38.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver with a four hour closing below 36.35 gradually targeting 35.00 and 34.35 , while the stop loss is a daily closing above 36.75 might be appropriate. | ||||
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