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Technical Precious Metals
Written by article default Friday, 16 September 2011 09:21
Morning Report
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The breakout below the key support -turned into resistance- of 1785.00 has sent the metal sharply downwards as seen on the provided four-hour graph. Actually, our suggested Elliott hasn't been damaged and it will not be invalid unless the low of the fourth wave is breached at 1700.00 zones. At the same time, we can see the strength of the bearish trend that started at the pivotal resistance of 1845.00 as seen on AROON indicator. But, this sign contradicts the oversold sign on RSI 14; whilst the metal is very close to the important Fibonacci level of 76.4% for the upside rally from 1702.00 to the historical high of 1920.00. Thereby, we will be neutral over intraday basis; noting that a break of 1702.00 will force us to reconsider our proposed Elliott sequence.
The trading range for today is among the key support at 1702.00 and key resistance now at 1845.00.
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 | 1755.00 | 1742.00 | 1728.00 | 1715.00 | 1702.00 |
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| Resistance | 1772.00 | 1785.00 | 1800.00 | 1815.00 | 1825.00 |
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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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Gartley pattern failed to achieve the extended target, while silver returned to trade lower again forming another harmonic pattern; however this harmonic pattern could form several possible patterns, where the metal could have completed the formation of the Bat pattern, yet a breach of 39.20 should negate our suggested pattern. In case the metal breached the mentioned level, it could form a Butterfly harmonic pattern (not ideal), which will be completed at 37.45, finally silver could form Crab pattern, which should be competed at 35.95. In fact, all the mentioned patterns suggest a downside movement, however due to the high risks associated today, we will remain neutral, despite our expectations for an extension of the downside movement.
The trading range for today is among the key support at 37.45and key resistance now at 42.05.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 39.20 | 39.00 | 38.70 | 38.35 | 37.70 |
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| Resistance | 39.75 | 40.10 | 40.40 | 40.70 | 41.10 |
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| Recommendation | Based on the charts and explanations above, we remain neutral today due to the high risks associated | ||||
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