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Technical Precious Metals
Written by article default Tuesday, 20 December 2011 07:42
Morning Report
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The daily closing below 100% Fibonacci retracement of the CD leg for our accurate bearish harmonic AB=CD pattern is another technical motive that should bring more bearishness over intraday basis. We still see chances for resuming the downside journey of reaching the extended technical objectives of the harmonic formation. A break of 1582.00-1580.00 zones will trigger a panic sell-off and will negate the positivity on Stochastic. We recommend reviewing the weekly report for more details about the aforementioned pattern.
The trading range for today is among the key support at 1550.00 and key resistance now at 1653.00.
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 | 1590.00 | 1582.00 | 1575.00 | 1559.00 | 1549.00 |
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| Resistance | 1603.00 | 1607.00 | 1615.00 | 1620.00 | 1628.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1605.00 targeting 1540.00 and stop loss above 1645.00 might be appropriate. | ||||
Silver
Morning Report
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The metal is gradually declining, where this decline confirms the continuous effect of the rising wedge pattern –bearish pattern- as shown above. We expect silver to extend the downside movement, as the metal could reach the level of 28.10 and then 27.10 after providing a breach of the first level. These levels represent 78.6% and 88.6% Fibonacci corrections respectively. Our expectations require consolidation below 29.70 over intraday basis.
The trading range for today is among the key support at 26.00 and key resistance now at 31.00.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
**New York Candlesticks**
| Support | 28.85 | 28.60 | 28.10 | 27.50 | 27.10 |
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| Resistance | 29.15 | 29.90 | 30.30 | 30.55 | 31.00 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling silver around 29.15, and take profit in stages at (28.10 and 27.15) and stop loss with 4-hour closing above 30.00 might be appropriate | ||||
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