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Technical Precious Metals
Written by article default Tuesday, 29 November 2011 07:50
Morning Report
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Respecting our previous analysis, gold has moved towards the PRZ –potential reversal zones- of the hourly bearish harmonic Gartley pattern at 1720.00 where it started to move downwards once more -check the previous report for more details about this intraday harmonic overview. In the interim, the four-hour chart succeeded in drawing a bearish crossover on Stochastic which took the metal towards the sensitive areas -shaded in yellow- thereby, the bearishness is still favored over intraday basis; noting that a break below 1705.00 is required to confirm it. Conversely, gold should be well capped below 1740.00 to protect our scenario.
The trading range for today is among the key support at 1650.00 and key resistance now at 1765.00.
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 | 1703.00 | 1698.00 | 1687.00 | 1673.00 | 1665.00 |
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| Resistance | 1715.00 | 1720.00 | 1728.00 | 1732.00 | 1735.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold below1705.00 targeting 1650.00 and stop loss above 1740.00 might be appropriate. | ||||
Silver
Morning Report
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Silver is stable below the simple moving average 50, and also below 38.2% Fibonacci correction at 32.95, which supported the rising wedge pattern to remain effective. Therefore, our negative expectations remain valid. Stochastic is positive, but consolidation above 33.35 is required to activate this positivity seen on the indicator
The trading range for this week is among the key support at 29.55 and key resistance now at 33.50.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
**New York Candlesticks**
| Support | 31.60 | 31.25 | 30.95 | 30.50 | 30.30 |
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| Resistance | 32.10 | 32.60 | 32.95 | 33.05 | 33.35 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling silver around 32.10, and take profit in stages at (30.30 and 29.55) and stop loss with 4-hour closing above 33.35 might be appropriate | ||||
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