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Technical Precious Metals
Written by article default Wednesday, 09 November 2011 07:48
Morning Report
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After touching the psychological level of 1800.00, the metal has retreated once more as seen on the provided daily graph. It is currently hovering around 200% Fibonacci projection of BC leg of our suggested bearish harmonic AB=CD pattern that started at the significant low of 1533.00. At the same time, we can notice the negative divergence in addition to the negative crossover appearing on Stochastic that could assist it to adopt a favorable reaction to the harmonic pattern. As a consequence, we hold onto our bearish anticipations; noting that 1842.00 areas represent the second PRZ of the pattern and it should protect the bearish scenario.
The trading range for today is among the key support at 1728.00 and key resistance now at 1842.00.
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 | 1773.00 | 1765.00 | 1753.00 | 1745.00 | 1735.00 |
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| Resistance | 1795.00 | 1800.00 | 1815.00 | 1830.00 | 1842.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1795.00 targeting 1729 and stop loss above 1835.00 might be appropriate. | ||||
Silver
Morning Report
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The level of 35.10 is still preventing the metal from extending the upside move, where the bullish wave stopped during the Asian session, affected by this level, which represents 50% Fibonacci correction as shown above. At the same time, the simple moving average 20 protects the upside movement, which started due to the formation of the ascending triangle. Therefore, we remain neutral today, until silver confirms the upside movement by providing consolidation above 35.10.
The trading range for today is among the key support at 32.00 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 | 34.50 | 34.10 | 33.75 | 33.40 | 33.05 |
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| Resistance | 35.10 | 35.65 | 36.20 | 36.80 | 37.25 |
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| Recommendation | Based on the charts and explanations above, we remain neutral today, awaiting silver to breach the level of 35.10. | ||||
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