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Technical Precious Metals
Written by article default Monday, 08 August 2011 09:07
Weekly Report 08/08 – 12/ 08/ 2011
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The mild downside correction from 1683.00 to 1638.00-just a few dollars above 23.6% of CD leg- represented the effect of the bearish harmonic Deep Crab pattern-we recommend reviewing the previous reports for more details- and now, we will have a look at the metal from another view where the metal is forming the IM wave –impulsive wave- that started at 680.00. It seems that, we are witnessing a case of extended fifth wave within the extended fifth wave. Henceforth, we see chances for achieving more bullish actions after relieving Stochastic. Soft technical objectives reside around 1770.00 zones. On the downside, a break back below 1652.00 delays.
The trading range for this week is among the key support at 1627.00 and key resistance now at 1785.00.
The general trend over the short term basis is to the upside, targeting $ 1888.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.
| Support | 1694.00 | 1685.00 | 1674.00 | 1666.00 | 1655.00 |
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| Resistance | 1712.00 | 1720.00 | 1735.00 | 1760.00 | 1770.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1695.00 targeting 1770.00 and stop loss below 1650.00 might be appropriate. | ||||
Silver
Weekly Report 08/08 – 12/ 08/ 2011
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Silver declined sharply on Friday as expected, but opened the session today higher and is stable above 39.80, which suggest the formation of 5-0harmonic pattern. This pattern is not yet confirmed, however, the metal's movement is signaling a possibility of forming this pattern. The metal is forming the BC leg of the harmonic pattern, which will be completed at 41.25, 42.15 or 42.70, noting that 41.25 and 42.15 are very close to the previously mentioned main resistance, where the possibility of forming the leg at one of those levels is high. Therefore, we expect an upside trend for this week, but after completing the leg, we could see downside movement. A breach of 42.70 and consolidation above it should negate our suggested pattern and also the downside correction.
The trading range for today is among the key support at 37.30 and key resistance now at 43.85.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 40.00 | 39.75 | 39.20 | 38.70 | 38.25 |
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| Resistance | 40.40 | 40.90 | 40.25 | 41.70 | 42.15 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver around 40.00 and take profit in stages at (41.25, 41.70 and 42.15) and stop loss with 4-hour below 39.20 might be appropriate this week, but we also recommend checking our coming daily reports. | ||||