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Technical Precious Metals
Written by article default Wednesday, 12 October 2011 08:24
Morning Report
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Yesterday's bearish wave was ebbed around 1653.00 zones as seen obviously on the secondary image of the four-hour interval. On this subsidiary graph, we can see how trading dipped below TEMA 20; while the structure of the last four hour candlesticks looks corrective inside the long black candlestick pattern. Therefore, we look forward to witness more downside actions based on the wider daily picture of the double top formation; noting that a break of 1653.00 this time will bring panic sell-off actions. Ultimately, areas of 1702.00 should protect the awaited bearishness.
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 | 1653.00 | 1635.00 | 1615.00 | 1590.00 | 1575.00 |
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| Resistance | 1673.00 | 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 below 1653.00 targeting 1575.00 and stop loss above 1702.00 might be appropriate. | ||||
Silver
Morning Report
The metal is stable below the Simple Moving Average 20 and also below 33.15-65, which completed the continuation technical structure, where this structure remains valid with stability below these levels. Furthermore, Stochastic is within overbought areas, which could also add more confirmations to the bearish continuation structure. In result, we expect the downside movement to remain valid as long as silver is stable below 33.65 per ounce.
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 | 34.00 | 34.40 |
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| Recommendation | Based on the charts and explanations above, we recommend selling silver around 32.85 and take profit in stages at (30.85 and 29.05) and stop loss with daily closing above 33.70 might be appropriate. | ||||