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Technical Precious Metals
Written by article default Thursday, 15 September 2011 08:15
Morning Report
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"All we need is to witness a decisive break above 1833.00, preferably above 1845.00 to make sure that the impulsive wave from 1477.00 is still in progress forming its fifth wave" we wrote this sentence twice yesterday in our morning and midday reports to clarify the importance of breaching 1845.00. Having a deeper look at the provided graph, we will notice that 1845.00 was yesterday's recorded high where it moved downwards once again. Actually, the resistance line of the suggested corrective structure becomes now at 1825.00, but the negative sign on AROON forces us to stay aside until the metal beats it. Breaching through 1825.00 may fix the negativity on the chart and might bring strong buying interests.
The trading range for today is among the key support at 1755.00 and key resistance now at 1867.00.
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 | 1800.00 | 1785.00 | 1772.00 | 1761.00 | 1755.00 |
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| Resistance | 1815.00 | 1825.00 | 1833.00 | 1845.00 | 1855.00 |
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| Recommendation | Based on the charts and explanations above our opinion is staying aside until an actionable setup presents itself to define the upcoming big move. | ||||
Silver
Morning Report
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Silver is facing a barrier at 38.2% Fibonacci correction, which represents a critical resistance that forces downside pressures; however, the metal is trading sideways between 23.6% and 50% Fibonacci corrections. Momentum indictors are approaching oversold areas, which supports our expectations for a suggested upside bias over intraday basis. Consolidation above 39.75 is required, while our targets are at 41.55 and 42.05.
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 | 40.10 | 39.75 | 39.50 | 39.10 | 38.70 |
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| Resistance | 40.40 | 41.10 | 41.55 | 42.05 | 42.70 |
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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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