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Technical Precious Metals
Written by article default Tuesday, 16 August 2011 09:33
Morning Report
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Price actions produced a bullish candlestick formation over daily basis as seen on the secondary image. The other subsidiary chart for the four hour interval reflects the bullishness, occurred yesterday protected above SMA 50. Our main chart shows the IM-impulsive- nature of the current movements despite the sharp corrections, occurred with the closing of the past week. All the above mentioned technical factors contradict with the negativity appearing on Stochastic. Furthermore, gold should breach through 1770.00 with a daily closing above it to make sure that the metal is on its way towards our detected technical objective of 1888.00. To conclude, the neutrality is still in favor until we witness a decisive break above 1770.00 zones.
The trading range for today is among the key support at 1720.00 and key resistance now at 1815.00.
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 | 1760.00 | 1755.00 | 1742.00 | 1735.00 | 1720.00 |
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| Resistance | 1770.00 | 1779.00 | 1785.00 | 1800.00 | 1815.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until a clearer sign appears to pinpoint the upcoming big move. | ||||
Silver
Morning Report
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Consolidation above 39.50-39.10 supported the possibility of forming the suggested Butterfly harmonic pattern. This structure proposes an upside move that could support the metal to reach 41.10-30, which represents the potential reversal zone-PRZ- of the pattern. The harmony of Fibonacci ratios suggests forming this pattern indeed, while any trading above 37.80 should keep the upside move valid, and any trading above 38.80 support the possibility of the harmonic structure.
The trading range for today is among the key support at 37.35 and key resistance now at 41.30
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 39.50 | 39.10 | 38.80 | 38.25 | 37.30 |
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| Resistance | 39.75 | 40.10 | 40.40 | 40.90 | 41.10 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver around 39.50 and take profit at 41.10 and stop loss with 4-hour closing below 38.25 might be appropriate today. | ||||