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Technical Precious Metals
Written by article default Friday, 29 July 2011 08:04
Morning Report
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The long lower wick of yesterday's candlestick is another positive indication that the buying pressures remain strong above the psychological level of 1600.00. Additionally, we can see the positive closing above the pivotal level of 1609.00. In the interim, Vortex is still definitely positive; thus, 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. Note that, areas of 1585.00 should hold with a daily closing to keep our positive outlook valid.
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 1609.00 targeting 1645.00 and stop loss below 1585.00 might be appropriate. | ||||
Silver
Morning report
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Silver is trading bearishly, which is normal after breaching the bullish support shown in blue on the chart above; this level supported Silver and carried trading from the bottom of 33.15 reaching the top of 41.44. Stability below 40.40 supports the downside trend, while a breach of 23.6% Fibonacci correction could push silver to retest 38.2% Fibonacci correction at 38.25. Dear reader, we recommend reviewing our previous reports for more details that detail our negative expectations.
The trading range for today is among the key support at 37.30 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 | 39.50 | 39.20 | 38.70 | 38.25 | 37.95 |
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| Resistance | 39.75 | 40.00 | 40.20 | 40.40 | 40.90 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver around 39.75 and take profits in stages at 38.70 and 38.25 and stop loss with 4-hour closing above 40.40 might be appropriate | ||||