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Technical Precious Metals
Written by article default Thursday, 22 September 2011 09:34
Morning Report
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We still believe that staying aside for the time being is the convenient decision since the metal's upside move was limited yesterday below TEMA 20, while 76.4% Fibonacci for the wave from 1702.00 to 1920.00 protects the metal from below. Moreover, the suggested Elliott count is still valid as far as 1702.00 remains intact; whilst RSI 14 is very close to oversold areas. The contrarian between those technical factors forces us to be neutral. Breaching 1754.00 may take gold towards 1728.00 but on the other hand, breaching through 1800.00 will weaken the resistance around 1825.00 later.
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 | 1761.00 | 1755.00 | 1745.00 | 1728.00 | 1715.00 |
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| Resistance | 1785.00 | 1800.00 | 1807.00 | 1811.00 | 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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The metal has broken the short term ascending trend line along with the 50 days SMA shown on image and currently settled below them, a minor descending channel has formed as well, and all suggests that more downside pressure is in favor targeting mainly the 39.00 support and the main ascending trend line and support near 37.30 at the moment. RSI dipped below 50 suggesting the bearish momentum may strengthen.
The trading range for today is among the key support at 37.45 and key resistance now at 42.70.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 39.30 | 38.80 | 38.25 | 37.90 | 37.50 |
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| Resistance | 39.70 | 40.20 | 40.75 | 41.30 | 42.00 |
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| Recommendation | Based on the charts and explanations above, we recommend selling silver around 39.80 and take profit in stages at (38.90 and 37.70) and stop loss with 4-hour closing above 40.40 might be appropriate. | ||||
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