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Technical Precious Metals
Written by article default Friday, 02 December 2011 11:38
Morning Report
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Gold has adopted a favorable reaction to the negativity on Stochastic as we discussed in our previous report, but it couldn't stabilize below the pivotal support areas between 1735.00 and 1740.00, while Stochastic succeeded in overlapping bullishly. Over daily studies, the metal has created a potential hanging man pattern; whilst the daily Stochastic started to draw a negative crossover. The contrarian between the four-hour timescale and the daily signs forces us to remain neutral over intraday basis; noting that breaching 1735.00 zones will be a good sign for bears to enter the market. However, a break above 1755.00-1765.00 will bring more buying interests.
The trading range for today is among the key support at 1673.00 and key resistance now at 1802.00.
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 | 1735.00 | 1728.00 | 1715.00 | 1707.00 | 1703.00 |
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| Resistance | 1753.00 | 1765.00 | 1773.00 | 1785.00 | 1795.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move. | ||||
Silver
Morning Report
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The positivity seen yesterday was not able to push silver above 33.75, where we didn’t witnessed any 4-hour closing above 33.40-50 and therefore our negative weekly expectations remain valid affected by the rising wedge pattern in addition to the Stochastic entering overbought areas. Stability below 32.10 should confirm the return of the negativity.
The trading range today is among the key support at 30.30 and key resistance now at 34.60.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
**New York Candlesticks**
| Support | 32.10 | 31.60 | 31.25 | 30.95 | 30.50 |
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| Resistance | 33.05 | 33.50 | 33.75 | 34.25 | 34.60 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling silver around 32.95, and take profit in stages at (31.25 and30.30) and stop loss with 4-hour closing above 33.75 might be appropriate. | ||||
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