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Technical Precious Metals
Written by article default Wednesday, 24 August 2011 07:51
Morning Report
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Yesterday's sharp decline has detected that the bigger third wave has been placed already at 1912.00 zones as the metal was taken towards 23.6% Fibonacci retracement of the upside rally from 1580.00 to the aforesaid all-time high. As this decline was sharp, we don't think that the fourth wave is placed as it may form two more waves where 38.2% Fibonacci at 1785.00 could be touched before starting a new impulsive wave –fifth wave- thus, we will stay aside until we make sure that the corrective fourth wave is over, noting that coming back above 1880.00-1888.00 will bring upside rally resumption. Dear reader, touching 1785.00 will draw an oversold sign on RSI 14.
The trading range for today is among the key support at 1790.00 and key resistance now at 1912.00.
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 | 1835.00 | 1823.00 | 1815.00 | 1800.00 | 1790.00 |
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| Resistance | 1855.00 | 1868.00 | 1875.00 | 1888.00 | 1900.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until we make sure that the fourth wave is placed to enter a new upside impulsive wave-fifth wave-. | ||||
Silver
Morning Report
Our expectations for yesterday failed, after silver declined sharply. However, we didn’t witness any consolidation below the critical of 41.70 (check our Weekly Report for more information regarding this level; therefore, the upside movement could return and complete the Bat harmonic pattern, where the CD leg of this pattern is close to be a possible AB=CD harmonic structure. Stability above 42.20 is essential to keep our expectations as unchanged.
The trading range for today is among the key support at 40.10and key resistance now at 40.80
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact
| Support | 41.70 | 41.10 | 40.90 | 40.40 | 40.10 |
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| Resistance | 42.20 | 42.70 | 43.25 | 43.68 | 43.85 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver with 4-hour closing above 42.20 and take profit in stages at (43.85 and 44.80) and stop loss with daily closing below 41.70 might be appropriate. | ||||