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Technical Precious Metals
Written by article default Wednesday, 27 July 2011 09:11
Morning Report
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As planned, gold has touched areas of the 1609.00 which were defined to be the new technical base for resuming the uptrend towards the PRZ –potential reversal zones- of the "Deep Crab" pattern discussed in details in our weekly report. The secondary educational shows the rhythmic of Fibonacci levels dominating the aforesaid pattern; thus, the bullishness may continue over intraday basis, supported by the positivity on momentum and trend indicators. Note that breaching through the extended resistance of 1627.00 will be able to accelerate the upside wave; whilst 1585.00 becomes our updated risk limit.
The trading range for today is among the key support at 1585.00 and key resistance now at 1645.00.
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 | 1615.00 | 1609.00 | 1600.00 | 1595.00 | 1585.00 |
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| Resistance | 1627.00 | 1632.00 | 1635.00 | 1642.00 | 1645.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1615.00 targeting 1645.00 and stop loss below 1595.00 might be appropriate. | ||||
Silver
Morning report
Silver rose yesterday again, but this incline was limited below 41.20 as shown above, where this level represents Fibonacci cluster resistance. But, a sharp bearish reversal is difficult to be confirmed as long as silver is stable above 40.00 and 40.40. Therefore, we remain neutral today until a 4-hour closing below 40.00 is seen to activate the suggested downside trend.
The trading range for today is among the key support at 38.05 and key resistance now at 41.20.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 40.40 | 40.20 | 40.00 | 39.75 | 39.20 |
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| Resistance | 40.90 | 41.20 | 41.85 | 42.20 | 42.50 |
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| Recommendation | Based on the charts and explanations above we recommend selling silver with 4-hour closing below 40.00 and take profit in stages at (39.20, 38.70 and 38.05) and stop loss with 4-hour closing above 40.90 might be appropriate today. | ||||