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Technical Precious Metals
Written by article default Thursday, 21 July 2011 13:21
Midday Report
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The consolidation scenario continues dominating the price behaviors of the metal below the PRZ -potential reversal zones- of the harmonic structure as seen on the provided daily graph. We need to see a strong breakout above 1609.00 or below 1578.00 to define if the metal will continue forming the Deep Crab pattern discussed earlier or the bearish effect of the Butterfly pattern will send gold towards the projected technical objective of 38.2% of the completed CD leg. The contradiction between the positive sign of Vortex and negative sign of Stochastic continues on the chart. Thereby, we will keep our neutrality intact for the rest of the day.
The trading range for today is among the key support at 1562.00 and key resistance now at 1635.00.
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 | 1595.00 | 1585.00 | 1578.00 | 1572.00 | 1565.00 |
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| Resistance | 1607.00 | 1615.00 | 1627.00 | 1635.00 | 1650.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||
Silver
Midday Report
The metal is biased to the downside and Stochastic is turning negative while RSI revised to the downside. These signs support the strenght of the resistance area between 40.20 and 40.40 which pushed silver lower, and now we expect silver to extend the bearishness. Our expectations remain valid as long as the metal is stable below the mentioned resistance, yet a breach of 41.20 and stability above it will negate our expectations.
The trading range for today is among the key support at 37.05 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 | 39.30 | 38.90 | 38.25 | 37.95 | 37.45 |
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| Resistance | 39.75 | 40.20 | 40.40 | 40.90 | 41.20 |
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| Recommendation | Our morning expectations remain valid | ||||
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