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Technical Precious Metals
Written by article default Thursday, 17 November 2011 07:31
Morning Report
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Gold tested 1757.00 where it failed to trade below 1755.00 level, we are still anticipating a breach below 1755.00 that may confirm the bearish effect of the AB=CD bearish harmonic pattern. The metal may be forming a descending triangle formation as well, suggesting more bearishness, a test of the descending resistance of this formation around 1785.00 followed by a reversal to the downside again to breach 1755.00 will confirm the bearish pattern and send the pair lower toward our suggested targets.
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 | 1765.00 | 1753.00 | 1745.00 | 1735.00 | 1728.00 |
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| Resistance | 1785.00 | 1795.00 | 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 1702.00 and stop loss above 1815.00 might be appropriate. | ||||
Silver
Morning Report
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Silver is trading below the support level of the rising wedge pattern, which suggests that silver could be negatively biased supported by this bearish pattern. Stochastic is negative, while the relative strength index breached the 50-point level. Therefore, we expect a downside movement to control the pair’s movement today.
The trading range for today 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, our opinion selling silver with a breach of 33.75 and take profit in stages at (32.10 and 31.25) and stop loss above 35.10 might be appropriate. | ||||
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