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Technical Precious Metals
Written by article default Friday, 22 July 2011 09:23
Morning Report
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The metal is still trapped between the initial support levels of 1580.00-1578.00 and the previous detected PRZ -potential reversal zones- of the bearish harmonic butterfly. As we discussed earlier, 1578.00 should be breached to be able to say that the bearishness from 1609.00 will continue towards the technical objective of 38.2% retracement of CD leg. In the interim, breaching through 1609.00 will change the pattern into "Deep Crab" pattern and will send the metal towards 1645.00 zones. The contradiction between signs on momentum and trend indicators forces us to stay aside over intraday basis.
The trading range for today is among the key support at 1558.00 and key resistance now at 1627.00.
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 | 1585.00 | 1578.00 | 1572.00 | 1565.00 | 1562.00 |
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| Resistance | 1595.00 | 1600.00 | 1607.00 | 1615.00 | 1627.00 |
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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
Morning Report
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The negative pressures continue, while RSI is presently breaching the value of 50.00 downwards. Areas between 40.40 and 40.20 have proved its solidity. Henceforth, there are chances for resuming the bearishness over intraday basis after retesting the 38.2% Fibonacci retracement level at 39.75 seen on the provided graph. Additionally, we may witness a retest of 50% Fibonacci at 37.05. Areas of 40.40, preferably 39.75 should hold to keep our expectations valid
The trading range for today is among the key support at 37.05 and key resistance now at 41.20.
The general trend over the short term basis is to the downside targeting 26.65 per ounce as far as areas of 48.50 remain intact with weekly closing.
| Support | 38.90 | 38.25 | 37.95 | 37.45 | 37.05 |
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| Resistance | 39.30 | 39.75 | 40.20 | 40.40 | 40.90 |
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| Recommendation | Based on the charts and explanations above our opinion is selling silver around 39.75 and take profit in stages at 38.90, 37.95, and stop loss with 4-hour closing above 40.40 might be appropriate | ||||