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Technical Precious Metals
Written by article default Tuesday, 27 December 2011 09:09
Weekly Report 27/12 – 30/ 12/ 2011
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Respecting our previous proposed bearishness, the metal slipped after clearing 1603.00-1602.00 zone as seen on the provided daily chart. This decline has been capable of activating a confirmed negative crossover on Stochastic that could assist gold to reach the extended technical objectives of our accurate bearish harmonic AB=CD pattern since trading is still seen below 76.4% Fibonacci of CD leg for the pattern. Fibonacci projection of 127.2% of the aforesaid leg is under our technical microscope now.
The trading range for this week is among the key support at 1475.00 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 | 1582.00 | 1559.00 | 1549.00 | 1533.00 | 1500.00 |
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| Resistance | 1615.00 | 1628.00 | 1645.00 | 1653.00 | 1665.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1602.00 targeting 1533.00 and stop loss above 1646.00 might be appropriate. | ||||
Silver
Weekly Report 27/12 – 30/ 12/ 2011
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Silver continued moving downwards affected by our major efficient bearish pattern -rising wedge- as seen on the provided four-hour chart. Actually, SMA 50 -colored in red- continued covering the metal since it breached 38.2% Fibonacci retracement of the entire downside rally from 43.35 to the significant low of 26.05. Now, coming below 23.6% is another technical catalyst that may send the metal lower during this week, supported by the negativity on AROON indicator. In the interim, Stochastic may cause some kind of fluctuation, but we don’t think it can change the bearish trend. Areas of 26.05 are threatened, while the technical objective of the rising wedge resides at 26.70.
The trading range for this week is among the key support at 26.05 and key resistance now at 31.50.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 28.60 | 28.10 | 27.50 | 26.70 | 26.05 |
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| Resistance | 29.70 | 30.30 | 30.85 | 31.00 | 31.50 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling silver around 29.25 targeting 26.70 and stop loss above 30.85 might be appropriate. | ||||
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