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Technical Precious Metals
Written by article default Friday, 09 September 2011 09:40
Morning Report
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The metal has achieved violent upside actions yesterday, engulfing the bearish actions of the day before. Looking deeper at the provided four hour chart; we can notice that gold succeeded in stabilizing above TEMA 20 once more while yesterday's negative sign of Parabolic SAR indicator was fixed as well. At the same time, AROON became positive suggesting that the IM -impulsive- wave started from 1477.00 is still valid; particularly after stabilizing above the initial support -previous resistance- of 1833.00. A break of 1888.00 will weaken the psychological level of 1900.00 and will ease the path for recording new historical highs.
The trading range for today is among the key support at 1800.00 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 | 1855.00 | 1845.00 | 1833.00 | 1825.00 | 1815.00 |
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| Resistance | 1867.00 | 1872.00 | 1888.00 | 1900.00 | 1912.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1850.00 targeting 1912.00 and stop loss below 1805.00 might be appropriate. | ||||
Silver
Morning Report
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Silver inclined yesterday, while the metal is currently trading around the critical levels of 42.20. We expect silver to resume the previous upside trend, reaching the level of 42.95 and stabilizing above it. This suggests that the positive move should bring the medium term harmonic outlook back, which is forming a harmonic structure, while stability above 40.90 supports the suggested upside movement. We should observe the pair’s behavior between 43.25 and 44.20, where these levels represent the previously reversal potential zones and could specify the strength of the current upside move.
The trading range for today is among the key support at 40.40 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 | 42.00 | 41.45 | 41.10 | 40.90 | 40.40 |
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| Resistance | 42.70 | 43.00 | 43.25 | 43.55 | 44.20 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver around 42.20 and take profit in stages at (43.25 and 44.20) and stop loss with 4-hour closing below 41.45 might be appropriate. | ||||
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