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Technical Precious Metals
Written by article default Monday, 05 December 2011 07:11
Weekly Report 05/12 – 09/ 12/ 2011
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We defined areas 1755.00 and 1765.00 to be the ceiling of any upside attempts during the previous week and they succeeded in forcing the metal to move lower ahead of Friday's closing as seen on the provided graph. The negative picture will not be activated unless we witness a sustained breakout below 1740.00 zones despite the bearish tendency appearing on the daily chart-secondary image-. Be careful since Stochastic over four-hour interval is on its way to enter oversold areas and may activate heavy fluctuation before the awaited breakout occurs. Finally, taking 1765.00 levels will damage the bearish probability.
The trading range for this week is among the key support at 1665.00 and key resistance now at 1825.00.
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 | 1740.00 | 1728.00 | 1715.00 | 1703.00 | 1695.00 |
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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, selling gold below 1740.00 targeting 1695.00 and stop loss above 1767.00 might be appropriate. | ||||
Silver
Weekly Report 05/12 – 09/ 12/ 2011
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Silver didn’t provide any 4-hour closing above 32.95, which indicates that the metal failed to incline and the bearish technical structure (rising wedge pattern) is still effective. Stochastic is negative, while the RSI failed to settle above the 50-point level, where all these factors together drive us to expect that the downside movement could return.
The trading range for this week is among the key support at 29.15 and key resistance now at 35.10.
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 | 31.45 | 31.25 | 30.75 | 30.30 |
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| Resistance | 32.95 | 33.40 | 33.75 | 34.00 | 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 (30.75 and 29.80) and stop loss with 4-hour closing above 33.40 might be appropriate | ||||
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