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Technical Precious Metals
Written by article default Tuesday, 09 August 2011 08:13
Morning Report
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Within just a few hours of trading, the metal moved from our yesterday's detected support around 1690-1695.00 zones towards the suggested technical objective of the weekly report at 1770.00. As we discussed earlier, 1770.00 zones represent the soft technical objective of fifth wave; whilst Stochastic started to enter overbought areas and it may need some kind of relief. Accordingly, we believe that risk versus reward ratio is very high today and we should be satisfied with the result of weekly analysis after traders have taken the metal towards our defined target easily and quickly. Breaching through 1770.00 with a daily closing will open the door up towards 1810.00, followed by 1888.00.
The trading range for today is among the key support at 1700.00 and key resistance now at 1810.00.
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 | 1744.00 | 1735.00 | 1720.00 | 1716.00 | 1712.00 |
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| Resistance | 1755.00 | 1760.00 | 1770.00 | 1785.00 | 1810.00 |
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| Recommendation | Based on the charts and explanations above, we will watch out the price behaviors today since risk versus reward ratio is very high. | ||||
Silver
Morning Report
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The metal declined sharply to negate our weekly expectations through 4-hour closing below 39.20, while silver is currently stable between 38.2% Fibonacci at 38.70 and 23.6% Fibonacci at 40.10. The current situation is very critical, where a breach of 38.50 with four hour closing could bring a bearish wave to retest 37.70, which if breached, we could see another downside move toward 37.25 and maybe 36.60, while consolidation above 40.10 could bring the positivity back. Therefore, we will stay neutral today, awaiting more signs of the metal’s behavior around these critical levels.
The trading range for today is among the key support at 36.60 and key resistance now at 41.25.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 38.70 | 38.50 | 38.25 | 37.95 | 37.30 |
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| Resistance | 39.20 | 39.75 | 40.10 | 40.40 | 40.90 |
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| Recommendation | Based on the charts and explanations above, we recommend observing silver for more confirmations regarding the short-term move. | ||||