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Technical Precious Metals
Written by article default Wednesday, 11 January 2012 07:41
Morning Report
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Yesterday's bullish movements succeeded in fixing the negative signs on Stochastic and Vortex indicators but the closing was achieved below the pivotal resistance of 1640.00 as seen on the provided daily chart. As we discussed yesterday, our suggested harmonic Crab pattern will be valid as far as "B" point at 1665.00 holds; thus, risk versus reward ratio becomes too high forcing us to stay aside today. A break of 1665.00 will damage harmonic structure completely but on the other side, a break back below 1603.00 will bring panic sell-off actions.
The trading range for today is among the key support at 1582.00 and key resistance now at 1702.00.
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 | 1628.00 | 1620.00 | 1615.00 | 1607.00 | 1603.00 |
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| Resistance | 1640.00 | 1645.00 | 1653.00 | 1665.00 | 1673.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside as risk versus reward ratio is too high today. | ||||
Silver
Morning Report
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The metal is trading positivily, affected by the suggested bullish Bat harmonic pattern and the bullish classic pattern mentioned in or previous report. The extension of the upside move is available today, especailly when momentum indicators are positive. Consolidation above 29.05 is necessary to confirm our positive outlook over intraday basis, while the current upside move depends on stabiltity above 28.10.
The trading range for today is among the key support at 27.10 and key resistance now at 31.30.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
**New York Candlesticks**
| Support | 29.70 | 29.40 | 29.05 | 28.85 | 28.10 |
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| Resistance | 30.00 | 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 29.40, and take profit in stages at (30.80 and 31.30) and stop loss with 4-hour closing below 28.10 might be appropriate | ||||
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