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Technical Precious Metals
Written by article default Monday, 14 November 2011 07:47
Weekly Report 14/11 – 18/ 11/ 2011
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The metal has moved upwards on Friday threatening our suggested bearish harmonic AB=CD pattern which didn't reach its projected technical objectives as 38.2% Fibonacci of CD leg -the first technical target of this harmonic study- resides at 1726.00. Furthermore, Stochastic succeeded in overlapping positively and that may take gold towards the second potential reversal zones –D 2- at 1842.00, but we have two technical obstacles which prevent us form suggesting more upside actions as follows:
- The solidity of 1803.00 resistance.
- The overbought sign appearing on the four-hour interval.
Consequently, we will avoid trading until the metal shows the ability to beat 1803.00; otherwise, the major bearish harmonic AB=CD will be valid.
The trading range for this week is among the key support at 1702.00 and key resistance now at 1885.00.
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 | 1753.00 | 1745.00 | 1728.00 | 1715.00 |
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| Resistance | 1800.00 | 1815.00 | 1830.00 | 1842.00 | 1855.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable setup introduces itself to pinpoint the upcoming big move. | ||||
Silver
Weekly Report 14/11 – 18/ 11/ 2011
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Silver rebounded to the upside after reaching areas around 32.95, which represents the base of the suggested Ascending Triangle formation as shown above on the first chart; in addition, these areas are close to the support level of the rising wedge pattern, where consolidation above this level suggests more attempts to breach the level of 35.10. Stochastic is currently within overbought areas, which could trigger some fluctuations and maybe downside corrections in attempts to retest the simple moving average 50 at 34.30, but we expect the metal to provide another bullish attempt; however a breach of 35.10, could support the metal to extend the upside move to retest the main resistance of the rising wedge pattern at 36.80, while a breach of this resistance could support the metal to achieve the Ascending Triangle’s target at 37.25-80.
The trading range for this week is among the key support at 30.30 and key resistance now at 37.80.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
**New York 4-hour Candlesticks**
| Support | 34.60 | 34.00 | 33.75 | 33.40 | 32.95 |
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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 recommend buying silver around 34.30 and take profit in stages at (35.05 and 36.20) and stop loss with daily closing below 32.95 might be appropriate. | ||||
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