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Technical Precious Metals
Written by article default Thursday, 01 September 2011 09:25
Morning Report
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The metal is still consolidating below the pivotal resistance of 1833.00 as seen on the provided four hour graph. Indeed, trading is trapped within tight range, resulting in negative sign on AROON, but it is not complete bearish sign as AROON down-red- is still below levels of 30.00. In the interim, we can see stability above Parabolic SAR indicator that may fix the aforesaid sign. Anyhow, the IM-impulsive- wave consisting of five waves from 1477.00 is still in progress, encouraging us to keep our bullish overview intact over intraday basis.
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 | 1815.00 | 1800.00 | 1785.00 | 1772.00 | 1765.00 |
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| Resistance | 1833.00 | 1845.00 | 1854.00 | 1867.00 | 1875.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1815.00 targeting 1888.00 and stop loss below 1772.00 might be appropriate. | ||||
Silver
Morning Report
Silver inclined yesterday despite trading weakly, where the metal provided closing above 50%Fibonacci correction of the XA leg of the Suggested Bat harmonic pattern for the second consecutive day. This correction at 40.90 is a critical intraday barrier, where consolidation above this critical level suggests further upside movement in attempt to retest the level of 42.95, where a breach of this level supports the possibility of forming the harmonic structure. Our positive expectations require stability above 38.80, where trading below this level should negate our expectations.
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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