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Technical Precious Metals
Written by article default Thursday, 11 August 2011 08:33
Morning Report
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Gold has soared, closing above the previous detected soft technical target of the internal fifth wave of our caught IM –impulsive wave- discussed in details in the weekly report. Henceforth, we classify the bounce from 1815.00 zones to the current trading areas as preparation to continue moving higher over upcoming period. Stochastic is presently achieving a positive crossover despite approaching overbought areas; whilst AROON reflects the strength of the bullish trend. Only a break of 1755.00 delays the highly anticipated bullishness. Technical targets are seen around 1888.00 according to Fibonacci rules.
The trading range for today is among the key support at 1735.00 and key resistance now at 1830.00.
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 | 1775.00 | 1760.00 | 1755.00 | 1735.00 | 1720.00 |
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| Resistance | 1795.00 | 1800.00 | 1815.00 | 1830.00 | 18 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1782.00 targeting 1820.00 and stop loss below 1754.00 might be appropriate. | ||||
Silver
Morning Report
Silver breached 38.80 and rebounded to the upside, but SMA 50 at 39.60 stopped this incline. Stochastic negatively crossed over, while the RSI failed to consolidate above the 50 points level, where all these signals are against the previous breach. Therefore, we will stay neutral today, awaiting more confirmations.
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 | 38.50 | 38.25 | 37.60 | 37.30 | 36.75 |
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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. | ||||
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