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Technical Precious Metals
Written by article default Wednesday, 31 August 2011 07:44
Morning Report
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The metal inclined violently yesterday, approaching the technical objective, previously detected in our last reports at 1845.00. The IM-impulsive- wave consisting of five waves from 1477.00 is still in progress as seen on the provided 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.AROON indicator is still positive, solidifying the technical idea of resuming the upside rally of the fifth wave; whilst RSI 14 may cause some kind of fluctuation once the metal reaches 1845.00-1850.00 zones. Anyway, we hold onto our positive predictions over intraday basis as far as 1772.00 remains intact; however, focusing now becomes on 1888.00.
The trading range for today is among the key support at 1772.00 and key resistance now at 1895.00.
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 | 1825.00 | 1815.00 | 1800.00 | 1785.00 | 1772.00 |
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| Resistance | 1845.00 | 1854.00 | 1867.00 | 1875.00 | 1888.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1824.00 targeting 1900.00 and stop loss below 1772.00 might be appropriate. | ||||
Silver
Morning Report
Silver stabilized again above 50% Fibonacci level of the XA leg of the suggested Bat pattern. Stochastic is positive, while the Relative Strength Index (RSI) is stable above 50.00. Those signs encourage us to expect an upside move today, where consolidation above the ascending critical support, which is currently at the same point of 38.2% Fibonacci at 38.90-80. But, we prefer stability above 40.10 to support our intraday positivity better.
The trading range for today is among the key support at 38.80 and key resistance now at 42.95
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 | 39.50 | 39.10 |
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| Resistance | 41.70 | 42.20 | 42.95 | 43.25 | 43.68 |
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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 and 42.95) and stop loss with 4-hour closing below 40.10 might be appropriate. | ||||
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