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Technical Precious Metals
Written by article default Wednesday, 04 January 2012 10:15
Morning Report
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Gold is battling around our previous detected sensitive resistance of 1603.00 where the C point of the major bearish harmonic AB=CD pattern exists. This level could be the ceiling for the correction started at 1522.00 zones if the metal couldn’t penetrate it decisively as it may assist the price to continue forming the last leg of the harmonic Crab structure. At the same time, the four-hour chart shows a negative divergence on Stochastic that could negate the positivity of indicators over bigger time frames. Therefore, we hold onto our neutrality over intraday basis due to the sensitivity of the current technical situation.
The trading range for today is among the key support at 1533.00 and key resistance now at 1640.00.
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 | 1628.00 | 1635.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move. | ||||
Silver
Morning Report
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The metal settled above the first target of the bullish Bat harmonic pattern, which drives us to expect that silver could extend the upside move towards the pattern’s second target at 30.80, which represents 61.8% Fibonacci correction of the CD leg. Stochastic is still positive, while RSI attempts to breach the 50-point level. Harmonically wise, stability above 38.2% Fibonacci correction at 29.05 supports the possibility of an upside move significantly, while a breach of 27.10 is required to negate the suggested upside move.
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 | 28.10 | 27.50 | 27.10 |
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| Resistance | 29.90 | 30.30 | 30.55 | 30.85 | 31.00 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying silver above 29.10, and take profit in stages at (30.30 and 30.80) and stop loss with 4-hour closing below 28.10 might be appropriate | ||||
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