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Technical Precious Metals
Written by article default Friday, 19 August 2011 07:59
Morning Report
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Gold succeeded in reaching our yesterday's detected technical objective of 1830.00 very easily and very quickly, confirming the impulsive nature that dominates the current trend. Moving to the four-hour timescale will reveal the internal structure of the internal fifth wave discussed in the daily studies earlier-we recommend reviewing the previous report for more details about the bigger picture- .We know that the fifth wave itself consists of 5 waves; thus, we are probably witnessing the third wave-blue- of the bigger fifth with soft technical target at 1872.00. To recap, the bullishness is in still favored over intraday basis, supported by the positivity appearing on trend indicator. As for momentum indication, RSI 14 will be in need for relief sooner or later as it is presently valued at 80.00.
The trading range for today is among the key support at 1785.00 and key resistance now at 1888.00.
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 | 1835.00 | 1830.00 | 1815.00 | 1803.00 | 1795.00 |
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| Resistance | 1853.00 | 1862.00 | 1872.00 | 1880.00 | 1888.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1832.00 targeting 1872.00 and stop loss below 1803.00 might be appropriate. | ||||
Silver
Morning Report
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Our previous expectations are almost achieved, where silver reached the potential reversal zone of the bearish Butterfly harmonic pattern. Areas of 41.30-10 represents the potential reversal zone (PRZ) or point (D), which drives us to stay neutral today, observing the pair’s behavior near this critical level. A breach of 41.30 suggests forming another harmonic pattern (Bat pattern), this is another reason behind our neutrality today. We recommend checking the link below for more analysis regarding the new harmonic pattern.
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 | 40.40 | 40.10 | 39.75 | 39.50 | 39.10 |
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| Resistance | 41.10 | 41.30 | 41.85 | 42.05 | 42.50 |
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| Recommendation | Based on the charts and explanations above, we recommend observing silver, awaiting more confirmations. | ||||
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