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Technical Precious Metals
Written by article default Wednesday, 21 December 2011 07:47
Morning Report
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The sharp bounce from 1560.00 continued while we have been able to catch a potential bullish harmonica pattern connected by the above seen Fibonacci rhythmic. The metal is presently approaching the first technical objective of the pattern at 38.2% Fibonacci retracement of CD leg. Assessing indicators, Stochastic continued offering positive sign; whilst Vortex contradicts it by presenting a bearish sign. Since risk versus reward ratio is high, we will stay aside over intraday basis. Breaching through 1638.00 with a daily closing will bring more bullishness.
The trading range for today is among the key support at 1575.00 and key resistance now at 1673.00.
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 | 1620.00 | 1615.00 | 1607.00 | 1603.00 | 1590.00 |
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| Resistance | 1628.00 | 1635.00 | 1645.00 | 1653.00 | 1665.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside since risk versus reward ratio is too high for intraday traders. | ||||
Silver
Morning Report
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The incline seen yesterday was not able to lift the metal above the resistance level at 29.70. Stochastic is positive and in result consolidation above the mentioned resistance level is not preferable; as it could trigger an upside move to test the level of 30.85 before providing any bearish attempt. In general, our negative expectations remain as they are supported by the rising wedge pattern and stability below the mentioned resistance at 29.70.
The trading range for today is among the key support at 27.10 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 | 29.05 | 28.85 | 28.60 | 28.10 | 27.50 |
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| Resistance | 29.70 | 29.90 | 30.30 | 30.55 | 30.85 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling silver around 29.70, and take profit in stages at (28.60 and 27.50) and stop loss with 4-hour closing above 30.85 might be appropriate | ||||
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