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Technical Precious Metals
Written by article default Wednesday, 17 August 2011 11:17
Morning Report
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Price behaviors succeeded in presenting two important positive technical factors:
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Drawing a bullish candlestick formation that suggests more upside actions as seen on the secondary image.
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Achieving a daily closing above the pivotal resistance of 1770.00, easing the path towards 1800.00, followed by 1815.00 and subsequently 1888.00.
Anyway, the bullishness came back into focus due to the aforementioned technical factors; noting that breaching the psychological level of 1800.00 will trigger strong upside rally as we are witnessing an IM –impulsive wave, seen in details on the graph.
The trading range for today is among the key support at 1742.00 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 | 1779.00 | 1770.00 | 1760.00 | 1755.00 | 1742.00 |
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| Resistance | 1795.00 | 1800.00 | 1815.00 | 1830.00 | 1845.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1781.00 targeting 1825.00 and stop loss below 1754.00 might be appropriate. | ||||
Silver
Morning Report
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Silver is corresponding with the possible formation of the Butterfly harmonic pattern, where the metal is stable above the suggested (B) point of the Butterfly pattern, while consolidation above the suggested (X) point of the under formation pattern is required to confirm a possible retest of 41.10-30 primarily. Therefore, our positive expectations for silver remain valid over intraday basis.
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 | 37.95 |
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| Resistance | 40.10 | 40.40 | 40.90 | 41.10 | 41.30 |
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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. | ||||
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