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Technical Precious Metals
Written by article default Thursday, 28 July 2011 08:11
Morning Report
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After touching the first suggested technical target of the bullish CD wave at 1627.00 -check yesterday's report- the metal showed downside correctional movements that were limited around the pivotal support of 1609.00 as seen on the provided daily graph. There is a shaky crossover on Stochastic and it may cause some kind of fluctuation; but Vortex reflects the strength of the bullish trend. Henceforth, the CD leg of the harmonic Deep Crab pattern may continue; particularly if the pair succeeded in penetrating the resistance of 1627.00-1628.00. Technical targets of the PRZ for our captured harmonic formation are seen on the graph. Conversely, areas around 1585.00 should hold to protect this scenario.
The trading range for today is among the key support at 1574.00 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 | 1609.00 | 1600.00 | 1595.00 | 1585.00 | 1574.00 |
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| Resistance | 1620.00 | 1627.00 | 1632.00 | 1635.00 | 1642.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1612.00 targeting 1645.00 and stop loss below 1590.00 might be appropriate. | ||||
Silver
Morning report
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The level of 41.20 has proved its strength and pushed silver to reverse sharply to the downside yesterday, but now we see some upside correction to relief Stochastic, while the metal is trading around 40.40 per ounce. We expect the suggested downside trend to continue, but stability below the mentioned resistance is required. A bearish reversal is seen on RSI which support our expectations.
The trading range for today is among the key support at 38.25 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 | 40.20 | 40.00 | 39.50 | 38.70 | 38.25 |
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| Resistance | 40.70 | 40.90 | 41.20 | 41.85 | 42.20 |
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| Recommendation | Based on the charts and explanations above we recommend selling silver below 40.40 and take profit in stages at (39.50, 38.70 and 38.25) and stop loss with 4-hour closing above 41.20 might be appropriate today. | ||||