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Technical Precious Metals
Written by article default Tuesday, 12 July 2011 09:44
Morning Report
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Yesterday's incline has been limited below 1558.00 zones which represent the extreme extent of the BC leg for the harmonic 5-0 pattern. The CD leg should start following the BC leg and we know that the CD leg retraces towards 50% of BC leg in the typical cases. Henceforth, areas of 1517.00 could be touched later, noting that 1558.00 should hold to keep the bearishness valid.
The trading range for today is among the key support at 1517.00 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 | 1545.00 | 1538.00 | 1526.00 | 1517.00 | 1508.00 |
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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 1550.00 gradually targeting 1538.00, 1526 and 1517.00, while the stop loss is a four hour closing above 1558.00 might be appropriate. | ||||
Silver
Morning Report
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The metal fluctuated yesterday ending the day with big collapse which confirmed the bearish harmonic formation. Now, silver is trading below 36.35 zones; whilst RSI is stable below 50.00 supporting the bearish anticipations. Stochastic reflects oversold case suggesting more fluctuation, but stability below 36.35 zones makes the bearishness in favor. To conclude, the metal may retest 35.60 zones once more before moving to the dowside towards 34.76 areas. The aforesaid corrections are 38.2% and 61.8% of CD leg.
The trading range for today is among the key support at 33.30 and key resistance now at 37.45.
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 | 35.60 | 35.00 | 34.76 | 34.35 | 33.90 |
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| Resistance | 35.90 | 36.35 | 36.75 | 37.00 | 37.45 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 35.90 gradually targeting 35.60 and 34.76 , while the stop loss is a four hour closing above 36.75 might be appropriate. | ||||