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Technical Precious Metals
Written by article default Tuesday, 15 November 2011 10:24
Morning Report
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The metal has showed bearish tendency suggesting that the bearish harmonic AB=CD pattern is still in favor as far as 1803.00 remains intact. The main test for the validity of this harmonic structure resides at 1755.00 which represent 23.6% Fibonacci of CD leg. At the same time, we see Stochastic is in need for a breakout below this pivotal support to keep pace with our harmonic outlook. Anyway, we look forward to witness bearish actions over intraday basis, but we recommend being careful with any break above 1803.00 areas and for those who can bear risk; our risk limit will be the 1815.00 resistance.
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 | 1773.00 | 1785.00 | 1795.00 | 1800.00 | 1815.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1775.00 targeting 1702.00 and stop loss above 1815.00 might be appropriate. | ||||
Silver
Morning Report
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In case the technical structure which controlled silver’s movement from the bottom of 26.02 to the top of 35.65 was indeed a rising wedge pattern, we should wait for more confirmations regarding the breach of 33.50 as a start and then a breach of 32.95, where we can’t confirm that before this happens. The metal is currently facing these areas supported by stability below the moving average 50 around 34.35, where stability below this level could trigger a downside tendency in attempts to breach the mentioned levels. But on the other hand, a breach of 35.10 and consolidation above it could negate the downside movement. Dear reader, due to the high risks associated to our expectations we remain neutral today.
The trading range for this week is among the key support at 30.30 and key resistance now at 36.20.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 33.75 | 33.50 | 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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