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Technical Precious Metals
Written by article default Thursday, 14 July 2011 09:08
Morning Report
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After achieving yesterday's expected bullishness which was confirmed by breaching 1558.00 zones, gold recorded new historical highs. Actually, momentum indicators have been pushed towards overbought areas. In the interim, price came beneath the resistance of the ascending channel, closing below the upper line of Bollinger bands. Those signs suggest potential downside recovery targeting the middle line of Bollinger around 1562.00 and probably will extend towards the support line of the channel at 1556.00 before resuming the bullish direction, targeting 1600.00-1607.00 areas.
The trading range for today is among the key support at 1545.00 and key resistance now at 1615.00.
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 | 1575.00 | 1562.00 | 1556.00 | 1550.00 | 1545.00 |
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| Resistance | 1588.00 | 1600.00 | 1607.00 | 1615.00 | 1629.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1562.00 gradually targeting 1588.00, 1600.00 and 1607.00, while the stop loss is a four hour closing below 1545.00 might be appropriate. | ||||
Silver
Morning Report
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Yesterday's predications were achieved flawlessly since the four hour closing above 36.75 has taken the metal towards 38.25 zones. Now, we are facing two harmonic probabilities of AB=CD pattern. The PRZ of the first pattern reside at 38.25; while the second reside at 39.00-39.10 zones. Momentum indicators reflect overbought case supporting the first probability. Note that a four hour closing above 39.10 will bring another aggressive upside wave and our bearish expectations are based on witnessing a correction due to the aforesaid technical factors until the price behaviors proves the opposite.
The trading range for today is among the key support at 34.35 and key resistance now at 38.00.
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 | 37.60 | 37.45 | 37.10 | 36.75 | 36.35 |
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| Resistance | 38.25 | 38.90 | 39.10 | 39.75 | 40.20 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 38.10 gradually targeting 37.60,37.10 and 36.75 , while the stop loss is a four hour closing above 39.10 might be appropriate. | ||||
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