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Technical Precious Metals
Written by article default Wednesday, 07 September 2011 10:00
Morning Report
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As shown above on the chart, gold declined sharply since the morning. Nevertheless, this decline didn’t confirm that the bullish impulsive wave has ended, which represents the fifth wave of the suggested scenario. The metal could be trading within the minor fourth wave of the fifth general wave, while after the current downside correction should end, the metal might rebound to the upside again; however, we remain neutral today, awaiting the completion of the current downside correctional movement.
The trading range for today is among the key support at 1772.00 and key resistance now at 1920.00
The short-term trend is to the upside targeting 1945.00 as far as areas of 1475.00 remain intact
| Support | 1835.00 | 1825.00 | 1815.00 | 1800.00 | 1777.00 |
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| Resistance | 1845.00 | 1855.00 | 1867.00 | 1879.00 | 1900.00 |
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| Recommendation | Based on the charts and explanations above, we remain neutral today awaiting more confirmations | ||||
Silver
Morning Report
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The bearish Bat harmonic structure succeeded and forced silver to approach the previously suggested second target, while today, the metal is still biased to the downside as we can see silver is stable below 38.2% Fibonacci correction of the CD leg at 42.20. Stability below the mentioned level is sufficient for the metal to test the second target at 41.45 and maybe the first extended target at 40.90. Stability above 42.60 weakens the negative outlook.
The trading range for today is among the key support at 40.10 and key resistance now at 44.20
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact
| Support | 41.45 | 41.10 | 40.90 | 40.40 | 40.10 |
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| Resistance | 42.60 | 43.00 | 43.20 | 43.55 | 44.20 |
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| Recommendation | Based on the charts and explanations above, we recommend selling silver around 42.60 and take profit in stages at (41.50 and 40.90) and stop loss with 4-hour closing above 43.20 might be appropriate. | ||||
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