Members login
Technical Precious Metals
Written by article default Wednesday, 03 August 2011 08:03
Morning Report
 |
Respecting our weekly harmonic scenario for drawing the CD leg of the Deep Crab pattern, the metal succeeded in touching the PRZ of the aforesaid pattern at 1645.00 easily yesterday. Now, we are looking for the extended targets of the harmonic structure and we discussed yesterday that 1687.00 will be under our technical microscope after beating 1645.00. Areas of 1687.00 don't only represent 261.8% Fibonacci projection of BC leg, but Fibonacci projection of 200% of XA leg resides there too. In the interim, SMA 50 assisted the metal to soar upwards as it continues supporting it from below. Ultimately, We recommend reviewing the weekly report for more details about the suggested harmonic formation and its target which has been done.
The trading range for today is among the key support at 1627.00 and key resistance now at 1687.00.
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 | 1655.00 | 1645.00 | 1632.00 | 1627.00 | 1616.00 |
|
|
|||||
| Resistance | 1665.00 | 1670.00 | 1674.00 | 1677.00 | 1687.00 |
|
|
|||||
| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1653.00 targeting 1687.00 and stop loss below 1627.00 might be appropriate. | ||||
Silver
Morning report
|
|
We haven’t seen any 4-hour closing above 40.80 nor any trading above 41.20, while Stochastic is moving within oversold areas. These negative signals suggest more bearishness. But, the current correction could be a flat correctional wave, where silver may be trading within the B wave of the flat correction, awaiting the completion of this wave to be confirmed, which will be followed by forming the bearish C wave, which usually represents an impulsive wave. Consolidation below 41.20 is necessary for our expectations to remain valid; however, trading below 40.40 should prove 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 | 40.40 | 40.00 | 39.75 | 39.50 | 38.70 |
|
|
|||||
| Resistance | 40.80 | 41.00 | 41.20 | 41.85 | 42.50 |
|
|
|||||
| Recommendation | Based on the chart and explanations above we recommend selling silver around 40.80 and take profit in stages at 38.25, 38.70, and 39.75 and stop loss with daily closing above 41.20 might be appropriate | ||||
|
