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Technical Precious Metals
Written by article default Friday, 04 November 2011 12:10
Midday Report
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The metal has shown a bearish tendency during the previous session, but the trading range is still tight due to the calmness that controls the market movements ahead of NFP data today as we know. Anyway, we still believe that the metal will continue seeking for an area to reverse in order to complete the potential bearish harmonic AB=CD pattern. Any intraday rallies should be capped below 1830.00 zones, while the negative sign on Stochastic should be activated as well around the pivotal resistance of 1785.00 zones. To conclude, our morning anticipations remain valid for the rest of the day.
The trading range for today is among the key support at 1695.00 and key resistance now at 1830.00.
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 | 1753.00 | 1745.00 | 1735.00 | 1728.00 | 1715.00 |
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| Resistance | 1765.00 | 1772.00 | 1785.00 | 1800.00 | 1807.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling rallies towards 1785.00 targeting 1705.00 and stop loss above 1830.00 might be appropriate. | ||||
Silver
Midday Report
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The downside attempts within the recent hours was limited at 34.18 failing to reach our awaited entry level, while the markets are anticipating the major NFP jobs reportك therefore we will be cautious this afternoon and change our approach to waiting for a breakout in either direction to jump into the potential upcoming move; either by breaching the resistance level at 34.75 to the upside or dipping below the minor possible rising wedge formation shown above.
The trading range for today is among the key support at 32.20 and key resistance now at 37.00.
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 | 34.00 | 33.45 | 32.75 | 32.15 | 31.50 |
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| Resistance | 34.75 | 35.50 | 36.45 | 36.90 | 37.25 |
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| Recommendation | Based on the charts and explanations above, we recommend buying silver with four-hour closing above 34.75 argeting 35.50 ,37.00. Stop loss with hourly closing below 34.15 OR Selling silver with four-hour closing below 33.95 targeting 33.30 and 32.15. Stop loss with hourly closing above 34.50 might be appropriate. | ||||
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