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Technical Precious Metals
Written by article default Friday, 11 November 2011 07:42
Morning Report
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Despite achieving a sharp recovery from yesterday's low at 1734.00, but the negative divergence on Stochastic continued appearing on the daily graph without a change. In the interim, AROON shows that the metal started to lose its upside steam. Henceforth, we will add those technical signs to the bearish harmonic AB=CD pattern which caused bearish movements from 1800.00 zones to predicate more downside actions over upcoming sessions. Only a break of 1842.00 will negate and will give us reason for concern.
The trading range for today is among the key support at 1687.00 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 | 1773.00 | 1785.00 | 1800.00 | 1815.00 | 1830.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1775.00 targeting 1707 and stop loss above 1830.00 might be appropriate. | ||||
Silver
Morning Report
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The first image explains the ascending triangle formation –bullish pattern-, which silver tested areas around its base yesterday. The second image explains the rising wedge pattern –bearish pattern-, which silver failed to breach its critical support yesterday. The level of 32.95 represents a critical barrier between these contradicted patterns, where a breach of this level confirms the downside movement, while stability above it support the upside movement to extend. The moving average 50 at 34.20 is our intraday barrier and could separate between the possibility of testing the level of 32.95 or testing the level of 35.10 again. As long as the metal is stable between 32.95 and 34.20 we prefer to remain neutral.
The trading range for today is among the key support at 30.30 and key resistance now at 35.10.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 33.75 | 33.40 | 33.05 | 32.95 | 32.60 |
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| Resistance | 34.25 | 34.60 | 35.10 | 35.65 | 36.20 |
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| Recommendation | Based on the charts and explanations above, we remain neutral today, awaiting more confirmations | ||||
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