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Technical Precious Metals
Written by article default Wednesday, 28 September 2011 10:27
Morning Report
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Respecting yesterday's detected mathematical resistances, the metal declined aggressively from 1677.00 zones as seen on the provided graph. Now, we need to witness a breakout below the pivotal point of Murrey lines at 1625.00 to make sure that the bearish effect of the double top pattern is in progress over daily studies. Meanwhile, the negativity on Vortex index reflect the strength of the bearishness that was accelerated below the neckline areas at 1702.00. To summarize this, we keep our bearish anticipations intact as far as 1702.00 remains intact.
The trading range for today is among the key support at 1533.00 and key resistance now at 1735.00.
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 | 1630.00 | 1615.00 | 1590.00 | 1560.00 | 1533.00 |
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| Resistance | 1665.00 | 1687.00 | 1702.00 | 1715.00 | 1728.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1650.00 targeting 1575.00 and stop loss above 1702.00 might be appropriate. | ||||
Silver
Morning Report
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Silver declined sharply and quickly after reaching between 32.95 and 33.65, where this range represents the neckline of the suggested double tops pattern and also 38.2% Fibonacci correction as shown above. Therefore, we expect a downside correction towards 30.30, while consolidation below this level should support the downside movement to extend further in attempts to retest the levels around 29.05. We note the high risk as precious metals market is volatile and fluctuates heavily.
The trading range for today is among the key support at 28.60 and key resistance now at 35.10.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 30.65 | 30.30 | 29.55 | 29.05 | 28.85 |
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| Resistance | 31.50 | 32.10 | 32.95 | 33.15 | 33.65 |
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| Recommendation | Based on the charts and explanations above, we recommend selling silver around 31.00 and take profit in stages at (30.30 and 29.05) and stop loss with 4-hour closing above 32.10 might be appropriate. | ||||
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