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Technical Precious Metals
Written by article default Thursday, 04 August 2011 08:58
GoldMorning Report
It seems that, the market is taking some kind of breath after achieving consecutive historical highs. Now, the path is clear towards areas of 1687.00 which represent 261.8% Fibonacci projection of BC leg and represent Fibonacci projection of 200% of XA leg resides there too. Therefore, we hold onto our bullish predictions over intraday basis, supported by positive signs on momentum and trend indicators; noting that Stochastic will reflect overbought case if it succeeded in reaching the second PRZ-potential reversal zones- of the suggested harmonic Deep Crab pattern.
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 |
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| Resistance | 1670.00 | 1674.00 | 1677.00 | 1687.00 | 1694.00 |
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| 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
As we mentioned in our previous report, the level of 41.20 is the critical barrier which separates between two Elliott scenarios, where today silver is stable above this level, which activated our positive expectations. But, according to the flat wave pattern’s rules, we find that it is possible for the B wave to extend far away from the start point of the wave A, where 42.05 represents 127.0% Fibonacci correction of the A wave –explained upon the first chart-, but as shown on the second chart, we need the metal to breach 42.05 to confirm the new impulsive wave and to negate the flat wave possibility. Momentum indicators are within overbought areas, which could cause heavy fluctuations, however, consolidation above 41.20 should support the upside move expectations.
The trading range for today is among the key support at 39.10 and key resistance now at 43.45.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 41.20 | 41.00 | 40.80 | 40.40 | 40.00 |
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| Resistance | 41.85 | 42.05 | 42.50 | 43.00 | 43.45 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver around 41.20 and take profit in stages at (42.05, 42.50 and 43.45) and stop loss with 4-hour below 40.40 might be appropriate today | ||||
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