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Technical Precious Metals
Written by article default Tuesday, 02 August 2011 07:53
Morning Report
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SMA 50 of the four hour time interval is still carrying the bullish trend as well; whilst the shaky sign appearing on Stochastic is being fixed gradually. Hence, we still see chances for achieving more upside actions over intraday basis, based on the harmonic possibility of drawing the previous explained "Deep Crab" pattern. Breaching through 1628.00-1632.00 will accelerate the bullishness; noting that breaching 1645.00 will send the metal sharply above the PRZ of the pattern, targeting 1687.00 to act as the new PRZ for our harmonic study.
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 | 1616.00 | 1612.00 | 1607.00 | 1600.00 | 1595.00 |
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| Resistance | 1625.00 | 1628.00 | 1632.00 | 1645.00 | 1655.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1616.00 targeting 1645.00 and stop loss below 1595.00 might be appropriate. | ||||
Silver
Morning Report
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Silver continues to trade around 39.50 and is stable below 40.40, forcing the metal to trade with negative tendency. According to our suggested Elliott sequence; we can see that, silver is still within a bearish correction of the upside impulsive wave, as shown on the provided graph. Therefore, our negative expectations remain valid as long as silver is stable below 41.20 and below 40.40 is more preferable.
The trading range for today is among the key support at 37.30 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 | 39.50 | 38.70 | 38.25 | 37.95 | 37.30 |
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| Resistance | 39.75 | 40.00 | 40.40 | 40.90 | 41.20 |
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| Recommendation | Based on the chart and explanations above we recommend selling silver around 39.75 and take profit in stages at 38.70, 37.95 and 37.30 and stop loss with daily closing above 40.40 might be appropriate | ||||