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Technical Precious Metals
Written by article default Monday, 29 August 2011 08:05
Weekly Report 29/08 – 02/ 09/ 2011
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The metal inclined violently, approaching the technical objective, previously detected in our Friday's reports at 1845.00. The IM-impulsive- wave consisting of five waves from 1477.00 continues dominating the four hour graph, where we believe that the fourth wave has been placed at 61.8% Fibonacci retracement of the third wave started 1580.00 to all-time high of 1912.00. Now, we can see Parabolic SAR is carrying the movements from below; whilst the AROON is positive, solidifying the technical idea of resuming the upside rally the fifth wave during this week. A break above 1833.00 will be a very positive indication.
The trading range for this week is among the key support at 1700.00 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 | 1800.00 | 1785.00 | 1755.00 | 1746.00 | 1726.00 |
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| Resistance | 1833.00 | 1854.00 | 1877.00 | 1895.00 | 1912.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1805.00 targeting 1890.00 and stop loss below 1750.00 might be appropriate. | ||||
Silver
Weekly Report 29/08 – 02/ 09/ 2011
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Silver stabilized above 50% Fibonacci correction as shown above, while Stochastic provides positive crossover. These signs support the possibility of forming the Bat harmonic pattern, where the pattern’s CD leg represents AB=CD harmonic pattern. Therefore, we expect silver to extend the upside movement this week, while stability above 38.60 is necessary for our expectations to prevail, but stability above 39.75 should keep our positive expectations strong.
The trading range for this week is among the key support at 37.30 and key resistance now at 44.35
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact
| Support | 40.90 | 40.40 | 40.10 | 39.75 | 39.10 |
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| Resistance | 41.70 | 42.15 | 42.70 | 43.00 | 43.25 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver around 40.90 and take profit in stages at (41.70, 42.95 and 44.35) and stop loss with daily closing below 39.75 might be appropriate. We recommend tracking silver’s movement by checking our daily reports. | ||||
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