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Technical Precious Metals
Written by article default Thursday, 18 August 2011 07:54
Morning Report
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From our yesterday's defined support areas between 1781.00 and 1779.00 the metal inclined steadily as seen on the provided daily graph. This incline has been capable of fixing the shaky sign appeared on AROON during the past days, repairing the negativity appeared on Stochastic with the week's opening. In the interim, the four hour interval-secondary image- has formed a bullish candlestick structure. Hence, we hold onto our bullish predictions over intraday basis; noting that breaching the psychological level of 1800.00 will trigger a strong upside rally according to the suggested Elliott count.
The trading range for today is among the key support at 1755.00 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 | 1785.00 | 1779.00 | 1770.00 | 1760.00 | 1755.00 |
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| Resistance | 1800.00 | 1815.00 | 1830.00 | 1845.00 | 1853.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1787.00 targeting 1830.00 and stop loss below 1759.00 might be appropriate. | ||||
Silver
Morning Report
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Silver is inclining gradually and stable above point (B) of the suggested Butterfly harmonic structure. We expect the upside move to extend today in attempts to retest 41.10-30. But, the suggested structure is a bearish harmonic structure. Therefore, if the metal reached the mentioned level, it should be watched closely.
The trading range for today is among the key support at 38.25 and key resistance now at 42.05
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 40.10 | 39.75 | 39.50 | 39.10 | 38.80 |
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| Resistance | 40.40 | 40.90 | 41.10 | 41.30 | 41.85 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver around 40.10 and take profit at 41.10 and stop loss with 4-hour closing below 39.40 might be appropriate today. But, we negate our expectations in case silver reached the target before achieving the entry point. | ||||
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