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Technical Precious Metals
Written by article default Thursday, 08 September 2011 09:18
Morning Report
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Despite coming below Parabolic SAR and TEMA 20 -colored in blue- but we have witnessed a very sharp upside bounce from 1790.00 zones as seen on the provided graph. One of the two required signs of AROON is presently fixed; whilst RSI 14 becomes positive contradicting with the negative signs and the aforesaid sharp decline. In the interim, our suggested Elliott sequence hasn't been damaged although areas of 1915.00-1920.00 played a big role to send the metal lower. Hence, the contrarian between signs and the aggressive upside recovery from 1790.00 force us to stay aside over intraday basis until clearer signs appear.
The trading range for today is among the key support at 1760.00 and key resistance now at 1912.00.
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 | 1770.00 |
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| Resistance | 1845.00 | 1855.00 | 1867.00 | 1872.00 | 1888.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself over upcoming sessions. | ||||
Silver
Morning Report
Silver declined sharply yesterday, reaching levels around 40.25 as we expected. Today, the metal returns to trade above 61.8% Fibonacci correction of the CD leg of the Bat harmonic pattern, and also above (B) point top around 41.45. Consolidation below 38.2% Fibonacci correction of the CD leg should keep the harmonic structure effective unless other technical signs contradict the pattern. On the other hand, consolidation above 61.8% Fibonacci correction could support the metal positively. Therefore, we remain neutral today after our suggested scenario was completed.
The trading range for today is among the key support at 40.10 and key resistance now at 43.65
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 | 42.00 | 42.20 | 42.70 | 43.00 | 43.65 |
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| Recommendation | Based on the charts and explanations above, we remain neutral today, awaiting more confirmations | ||||
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