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Technical Precious Metals
Written by article default Wednesday, 10 August 2011 09:39
Morning Report
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The metal couldn't achieve clear closing above 1770 which represent the soft technical objective of the fifth wave of our suggested Elliott count. Rationally, 261.8% Fibonacci projection should be the target in such cases of extensions since 161.8% was breached earlier very easily, but we can't judge if it will reach this extreme target at 1888.00 over short term basis or not; thus, we will stay aside over intraday basis until we witness a daily closing above 1770.00 areas. On the downside, breaching 1687.00-1680.00 areas will signal that an important top was placed at 1779.00. AROON is positive, but Stochastic isn't clear enough to reflect specific case of momentum indication despite being close to overbought zones.
The trading range for today is among the key support at 1687.00 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 | 1735.00 | 1720.00 | 1700.00 | 1694.00 | 1687.00 |
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| Resistance | 1755.00 | 1760.00 | 1770.00 | 1779.00 | 1785.00 |
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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 still very high. | ||||
Silver
Morning Report
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Silver declined affected by SMA 20 and SMA 50, which are trading negatively, and also affected by the strength of 38.75, but 4-hour closing below 37.30 wasn’t seen. The metal is trading within a gradually tightening range of a support at 36.80 and a resistance 38.75. Therefore, we will stay neutral again, observing the pair’s behavior around 37.30 and 61.8% Fibonacci, which could support the metal to rebound to the upside.
The trading range for today is among the key support at 35.30 and key resistance now at 40.40.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 37.30 | 36.60 | 36.35 | 35.90 | 35.60 |
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| Resistance | 38.25 | 38.50 | 38.80 | 39.20 | 39.75 |
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| Recommendation | Based on the charts and explanations above, we recommend observing silver for more confirmations regarding the short-term move. | ||||