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Technical Precious Metals
Written by article default Friday, 07 October 2011 09:34
Morning Report
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We have left the numerously discussed bigger classical picture of the double top formation over daily studies behind us-check the weekly report- and now we will focus on the hourly chart. The hourly intervals offers a possibility of forming a bearish harmonic Bat pattern with PRZ –potential reversal zones- at 1669.00 where the Fibonacci rhythmic seen on the graph could actuate the metal to move lower. The harmonic structure is well supported by the negative divergence on Stochastic. Ultimately, areas of 1702.00 should hold to protect the bearishness as if the metal succeeded in surpassing this PRZ, the way will be cleared for drawing a new PRZ at 1702.00 where a Crab pattern will appear. Anyway, let us take it step by step and focus on the current pattern to see if it will confirm the bigger daily picture or not?
The trading range for today is among the key support at 1575.00 and key resistance now at 1752.00.
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 | 1648.00 | 1635.00 | 1615.00 | 1596.00 | 1575.00 |
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| Resistance | 1665.00 | 1687.00 | 1695.00 | 1702.00 | 1715.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1665.00 targeting 1595.00 and stop loss above 1702.00 might be appropriate. | ||||
Silver
Morning Report
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Over hourly studies, the metal was able to incline and this upside action was confirmed through stability above 31.45. The bullishness could extend during the session today, while silver may attempt to reach 33.15-65 again. But, stability below 30.65, could negate the upside movement significantly.
The trading range for today is among the key support at 30.30 and key resistance now at 34.40
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 31.85 | 31.30 | 31.05 | 30.65 | 30.30 |
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| Resistance | 32.95 | 33.15 | 33.65 | 34.40 | 34.65 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver around 32.05 and take profit in stages at (33.15 and 34.40) and stop loss below 31.05 might be appropriate. | ||||
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