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Technical Precious Metals
Written by article default Friday, 02 September 2011 10:31
Morning Report
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Gold is still consolidating close to the pivotal support of 1833.00 after achieving bullish actions from 1815.00 as seen on the provided four hour graph. TEMA 20-colored in blue- and Parabolic SAR are still carrying the movements from below; whilst the negative sign of AROON which appeared yesterday was fixed. Henceforth, the bullishness is still in favor over intraday basis, supported by the IM –impulsive structure-; noting that clearing 1833.00 will be a very positive indication.
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 | 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 1823.00 targeting 1888.00 and stop loss below 1777.00 might be appropriate. | ||||
Silver
Morning Report
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Observing the 4-hour interval, we find silver is forming a possible Bat harmonic structure, but this structure also could be Gartly structure, however, the AB leg is less than 50% of the XA leg. In general, stability above 41.40 suggests an upside move, while consolidation above 40.80-90 should keep our expectations valid. A breach of C point bottom at 40.25 should negate the suggested harmonic pattern.
The trading range for today is among the key support at 38.80 and key resistance now at 43.68
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact
| Support | 41.40 | 40.90 | 40.40 | 40.25 | 40.10 |
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| Resistance | 41.70 | 42.20 | 42.95 | 43.05 | 43.60 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver around 41.40 and take profit in stages at (42.20 and 43.05) and stop loss with 4-hour closing below 40.40 might be appropriate. | ||||
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