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Technical Precious Metals
Written by article default Monday, 18 July 2011 09:02
Weekly Report 18/07 – 22/ 07/ 2011
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The provided daily graph shows that the metal IM wave that started at 680.00 zones is still in progress, where we believe that the internal fourth of the extended fifth wave has been placed at 1476.00 areas. Thus; the bullishness may continue during this week, mainly targeting 1627.00 zones, followed by the psychological level of 1650.00, subsequently 1694.00 areas over upcoming sessions where 161.8% Fibonacci projection level of the internal third wave exists. The IM -impulsive- wave is supported by the positive sign on AROON and stability above SMA 50 -trend indicators- while Stochastic may cause a slight correction before resuming the upside rally.
The trading range for this week is among the key support at 1529.00 and key resistance now at 1661.00.
The general trend over the short term basis is to the upside targeting 1694.00 per ounce as far as areas of 1430.00 remain intact with weekly closing.
| Support | 1589.00 | 1574.00 | 1562.00 | 1558.00 | 1552.00 |
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| Resistance | 1600.00 | 1607.00 | 1625.00 | 1635.00 | 1650.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1589.00 targeting 1650.00 and stop loss below 1558.00 might be appropriate. | ||||
Silver
Weekly Report 18/07 – 22/ 07/ 2011
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Stability above 39.10-60 was an evidence for ending the slight downside correction in the past week. Observing the chart above, we find the pair is stable above 38.2% Fibonacci correction at 39.10 shown above, and according to Fibonacci rules, consolidation above this correction suggests retesting the 50% Fibonacci correction, especially after the pair stabilized above the ascending support shown in blue above. Therefore, we conclude that any trading above 39.00-10 supports the suggested upside move, which could lead the pair to retest $41.05 per ounce.
The trading range for this week is among the key support at 37.00 and key resistance now at 42.50.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 39.10 | 38.40 | 38.00 | 37.45 | 37.00 |
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| Resistance | 40.20 | 40.70 | 41.05 | 41.55 | 41.85 |
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| Recommendation | Based on the charts and explanations above our opinion is buying silver around 39.10 and take profit in stages at 40.20, 41.05, and stop loss with 4-hour closing below 38.40 might be appropriate this week | ||||