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Technical Precious Metals
Written by article default Tuesday, 23 August 2011 09:24
Morning Report
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Carried above parabolic SAR as well, the metal succeeded in gathering the upside momentum it needs above 1855.00. From these areas, gold has soared recording new all-time high around 1912.00 zones. This incline has confirmed the impulsive nature of the third wave, seen on the provided four hour graph. RSI 14 may cause correctional waves from time to time due to the overbought case it reflects, but the bullishness is expected to continue towards 1945.00-1946.00, where 161.8% Fibonacci projection of the internal third wave of the bigger third wave exists. To recap, our suggested Elliott count is still favored over intraday basis.
The trading range for today is among the key support at 1855.00 and key resistance now at 1945.00.
The general trend over the short term basis is to the upside, targeting $ 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.
| Support | 1895.00 | 1888.00 | 1875.00 | 1868.00 | 1855.00 |
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| Resistance | 1910.00 | 1916.00 | 1923.00 | 1935.00 | 1945.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1891.00 targeting 1945.00 and stop loss below 1855.00 might be appropriate. | ||||
Silver
Morning Report
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Silver declined yesterday, covering the opening gap seen at the beginning of the week, where the metal reached the support of 42.75 and then, rebounded sharply to the upside to approach 44.35, which represents the first suggested target of bullish movement, expected yesterday. As shown above, we find that, forming the suggested Bat harmonic structure is still possible (to the left), while the CD leg could be itself an AB=CD harmonic pattern (to the right). Therefore, we expect the upside movement to extend on intraday basis and stability above 42.95 should support our positive expectations.
The trading range for today is among the key support at 41.70 and key resistance now at 45.85
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
| Support | 43.25 | 42.95 | 42.70 | 42.15 | 41.70 |
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| Resistance | 43.85 | 44.35 | 44.80 | 45.00 | 45.85 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver around 43.25 and take profit in stages at (44.35 and 45.85) and stop loss with daily closing below 42.15 might be appropriate. | ||||
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