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Technical Precious Metals
Written by article default Tuesday, 06 September 2011 07:51
Morning Report
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In line with our positive anticipation, gold is hitting new historical highs while we are writing these lines. The IM -impulsive- nature of the current wave of the suggested Elliott count continues pushing the pair higher. Our previous defined technical target of 1945.00 is under our technical microscope and breaching through it will bring panic buying pressure towards the psychological level of 2000.00. RSI 14 might cause fluctuation before achieving more upside actions. Our constructive bullish outlook is supported by the breakout above H 4 –long breakout- of camarilla studies as seen on the secondary image.
The trading range for today is among the key support at 1855.00 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 | 1912.00 | 1900.00 | 1888.00 | 1872.00 | 1867.00 |
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| Resistance | 1920.00 | 1927.00 | 1935.00 | 1945.00 | 1950.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1905.00 targeting 1945.00 and stop loss below 1879.00 might be appropriate. | ||||
Silver
Morning Report
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As we expected yesterday, silver declined sharply to reach near the first target of the harmonic structure, which represents 38.2% Fibonacci correction of the CD leg of the Bat harmonic pattern. But, stability below 43.55 and 44.20 drive us to expect another downside movement today, towards the first target around 42.30 and maybe the second target, which represents 61.8% Fibonacci correction. Stochastic is within overbought areas, while RSI is near those levels, which support our negative expectations.
The trading range for today is among the key support at 40.90 and key resistance now at 45.00
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact
| Support | 43.00 | 42.70 | 42.30 | 42.00 | 41.50 |
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| Resistance | 43.55 | 43.85 | 44.20 | 44.80 | 45.00 |
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| Recommendation | Based on the charts and explanations above, we recommend selling silver around 43.50and take profit in stages at (42.30 and 41.50) and stop loss with 4-hour closing above 44.20 might be appropriate. | ||||
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