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Technical Precious Metals
Written by article default Tuesday, 13 September 2011 07:59
Morning Report
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The metal's corrective structure is still in progress as seen on the provided four hour graph. We look forward to witness a decisive breakout above 1833.00 which represents 23.6% Fibonacci retracement of the entire upside move from the fourth wave to all-time high of 1920.00 and we prefer witnessing a breakout above 1845.00-1850.00 zones -TEMA 20 VALUE- to make sure that the correction is done. To conclude, we still look at the current price behavior as a correction that could be to gather momentum before resuming the bullishness of the IM wave. Only a break below 1785.00 with a daily closing will delay this scenario.
The trading range for today is among the key support at 1761.00 and key resistance now at 1888.00.
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 | 1815.00 | 1800.00 | 1785.00 | 1772.00 | 1761.00 |
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| Resistance | 1845.00 | 1855.00 | 1867.00 | 1873.00 | 1888.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold above 1833.00 targeting 1900.00 and stop loss below 1785.00 might be appropriate. | ||||
Silver
Morning Report
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The decline seen yesterday was unable to record a 4-hour closing below 39.75 and formed an ideal Gartley pattern as shown on the chart. The metal reached the first target of the pattern, which represents 38.2% Fibonacci correction of the CD leg at 40.80, and according to harmonic rules, stability above this level suggests an upside movement towards the second target at 41.55 and maybe the first extended target at 42.05, which represent 61.8% and 78.6% Fibonacci correction respectively. Stability with 4-hour closing below 39.75 is required to support our expectations.
The trading range for today is among the key support at 38.10 and key resistance now at 43.50.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 40.40 | 40.10 | 39.75 | 37.50 | 37.10 |
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| Resistance | 41.10 | 41.55 | 42.05 | 42.70 | 43.00 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver around 40.40 and take profit in stages at (41.55 and 42.05) and stop loss with 4-hour closing below 39.75. In case the metal reached our stop loss point, we recommend selling silver around 39.75 and take profit in stages at (38.80 and 38.10) and stop loss with 4-hour closing above 40.40 might be appropriate. | ||||
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