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Technical Precious Metals
Written by article default Tuesday, 01 November 2011 08:38
Morning Report
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Friday's hanging man candlestick pattern might have been confirmed by yesterday's negative candlestick and that may bring additional downside movements. Furthermore, we can see how the closing was achieved comfortably below SMA 50. But, we have a very hard technical obstacle around 1702.00 that prevent us from suggesting a downside wave as seen on the provided daily graph.
To recap, staying aside is favored as far as the metal is close to 1702.00 zones.
The trading range for today is among the key support at 1635.00 and key resistance now at 1763.00.
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 | 1702.00 | 1695.00 | 1687.00 | 1673.00 | 1665.00 |
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| Resistance | 1728.00 | 1735.00 | 1745.00 | 1753.00 | 1763.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable technical setup presents itself to pinpoint the next big move. | ||||
Silver
Morning Report
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Silver is stable below 50% Fibonacci correction at 35.10 as shown above and also below the resistance level at 34.60, which could support the metal to retest the base of the ascending triangle as shown above through the extension of the downside movement which started yesterday. The Relative Strength Index is negatively biased, but Stochastic is positive and could trigger fluctuations today.
The trading range for today is among the key support at 32.10 and key resistance now at 36.80.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 34.00 | 33.75 | 33.40 | 33.05 | 32.95 |
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| Resistance | 34.60 | 35.10 | 35.65 | 36.20 | 36.80 |
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| Recommendation | Based on the charts and explanations above, we recommend selling silver around 34.60 and take profit in stages at (33.85 and 32.95) and stop loss with daily closing above 35.25 might be appropriate. | ||||
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