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Technical Precious Metals
Written by article default Monday, 12 September 2011 09:44
Weekly Report 12/09 – 16/ 09/ 2011
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The sharp pullback from 1825.00 zones that occurred before Friday's closing is seen as a positive indication as it took the metal again above Parabolic SAR indicator. Furthermore, the support areas around 50% for the upside rally from the start point of the fifth wave to all-time recorded high have proved its solidity. Thereby, we still see that the IM -impulsive- wave which started at 1477.00 is still in progress, softly targeting 1945.00 zones. Only a break back below 1785.00 -61.8% Fibonacci- will threaten the bullish momentum, while a break below 1754.00-1746.00 will give us reasons for concern.
The trading range for this week is among the key support at 1746.00 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 | 1833.00 | 1815.00 | 1785.00 | 1772.00 | 1761.00 |
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| Resistance | 1867.00 | 1888.00 | 1900.00 | 1912.00 | 1920.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold above 1833.00 targeting 1912.00 and stop loss below 1785.00 might be appropriate. | ||||
Silver
Weekly Report 12/09 – 16/ 09/ 2011
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Silver is still negatively biased since Friday's closing, but as shown above on the chart, there are several signs for the upside movement to return. Consolidation above 50% Fibonacci correction at 40.90 is the first positive sign, while stability above the critical support of the upside movement at 39.80 as shown in Green is the second sign, and finally consolidation above (B) point top of the suggested Bat harmonic pattern (the dark Blue) is the third one. Therefore, an upside movement is expected this week as long as the metal is stable above 38.80 and 39.80 is much better.
The trading range for this week is among the key support at 38.25 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 | 40.90 | 40.40 | 40.10 | 39.75 | 39.10 |
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| Resistance | 41.50 | 42.30 | 42.70 | 43.25 | 43.60 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver around 40.90 and take profit in stages at (42.70 and 43.60) and stop loss with daily closing below 39.80 might be appropriate. | ||||
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