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Technical Precious Metals
Written by article default Wednesday, 14 September 2011 08:01
Morning Report
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In line with our previous report, the metal soared from the key support around 1792.00-1794.00 areas as seen on the provided four-hour graph. Now, the previous caught negative sign on AROON indicator is about to be fixed, but we need to witness a sustained breakout above the resistance line of the corrective structure to make sure that the correction from the all-time high of 1920.00 is completed. A breakout above the aforesaid resistance line -1835.00 zone- confirms our bullish predications; while a break above 1845.00 -value of TEMA 20- will accelerate the awaited upside wave. Conversely, a break back below 1785.00 will delay this wave.
The trading range for today is among the key support at 1772.00 and key resistance now at 1900.00.
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 | 1772.00 |
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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 1835.00 targeting 1912.00 and stop loss below 1785.00 might be appropriate. | ||||
Silver
Morning Report
Silver rebounded to the upside after the level of 40.00 stopped the metal’s negative momentum yesterday, which keeps Gartley harmonic pattern valid. Therefore, we suggest an upside bias today, targeting 41.55 and then 42.05, however, a breach of 39.75 with 4-hour closing could negate our expectations for an intraday upside move.
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 | 39.50 | 39.10 |
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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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