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Technical Precious Metals
Written by article default Thursday, 29 December 2011 08:54
Morning Report
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Our previous detected soft technical objective at 127.2% Fibonacci projection of CD leg for the main bearish harmonic AB=CD pattern has been reached. Actually, yesterday's sharp decline has been capable of forming an obvious bearish candlestick formation, while momentum and trend indicators support achieving further weakness below 1549.00 zones. The next technical target of the awaited bearishness resides at 1480.00 zones; whilst 1460.00 should be placed under our technical microscope as it may represent potential reversal zones-PRZ- for an under construction pattern- we will discuss it in the proper time- anyway, areas of 1603.00 should be the protecting for intraday bears.
The trading range for today is among the key support at 1475.00 and key resistance now at 1603.00.
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 | 1540.00 | 1533.00 | 1525.00 | 1515.00 | 1500.00 |
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| Resistance | 1562.00 | 1573.00 | 1587.00 | 1595.00 | 1603.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, selling gold around 1562.00 targeting 1480.00 and stop loss above 1604.00 might be appropriate. | ||||
Silver
Morning Report
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The decline seen yesterday sent the metal below 78.6% and 88.6% Fibonacci corrections of the upside move, which started from the bottom of 26.02 and ended at the top of 35.68. Stability below these levels could trigger more bearishness today to retest areas around 26.02 and maybe around 24.75, which represents 113% Fibonacci. A breakout below this level could support the downside movement to extend significantly. Momentum indicators are within oversold areas, but they don’t negate the positivity appearing on the graph.
The trading range for today is among the key support at 23.40 and key resistance now at 29.70.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
**New York Candlesticks**
| Support | 26.65 | 26.05 | 25.55 | 25.15 | 24.75 |
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| Resistance | 27.15 | 27.50 | 28.10 | 28.60 | 28.85 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling silver around 27.15, and take profit in stages at (26.05 and 24.75) and stop loss with 4-hour closing above 28.10 might be appropriate | ||||
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