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Technical Precious Metals
Written by article default Thursday, 03 November 2011 08:07
Morning Report
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The metal has been trading within the same trading range, struggling around SMA 50 -colored in red- as seen on the provided daily graph. Momentum and trend indicators are still showing a technical case of hesitation as AROON suggests a trend exhaustion, while Stochastic couldn't give off a clear signal. Hence, we hold onto our neutrality over intraday basis; noting that a break of 1750.00 will be a positive sign but breaching 1702.00 will bring the bearishness back into focus
The trading range for today is among the key support at 1665.00 and key resistance now at 1800.00.
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 | 1715.00 | 1702.00 | 1695.00 | 1687.00 | 1673.00 |
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| Resistance | 1735.00 | 1745.00 | 1753.00 | 1763.00 | 1772.00 |
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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. Of note, risk versus reward ratio is too high. | ||||
Silver
Morning Report
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Silver has been trading steadily to the upside within a pattern very similar to a rising wedge formation, where failure to stabilize below 33.00-32.75 areas is a positive sign that may push the metal to test the 50 days SMA shown above. Therefore, we expect an intraday upside move this morning supported by the 50 SMA over four-hour basis.
The trading range for today is among the key support at 31.60 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.
*The provided chart based on GMT+2*
| Support | 33.45 | 33.00 | 32.75 | 32.20 | 31.30 |
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| Resistance | 34.00 | 34.40 | 34.70 | 35.30 | 35.70 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver around 33.45 targeting 34.00,34.60 and 35.50 , stop loss with four-hour closing below 32.80 might be appropriate. | ||||