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Technical Precious Metals
Written by article default Thursday, 12 January 2012 08:35
Morning Report
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The technical situation hasn’t been changed since yesterday as the metal is still hovering between the support of 1628.00 and the initial resistance of 1650.00 as seen on the provided daily graph. Although Stochastic is positive but it is currently within overbought areas while Vortex continues giving off positive signal. Accordingly, we keep our neutral stance unchanged over intraday basis; noting that, B point of the harmonic Crab pattern remains intact and may activate a new downside attempt. Finally, a break of 1665.00 –B level- will damage the harmonic structure completely.
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 | 1635.00 | 1628.00 | 1620.00 | 1615.00 | 1607.00 |
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| Resistance | 1650.00 | 1653.00 | 1665.00 | 1673.00 | 1687.00 |
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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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We mentioned in our previous report that the Deep Crab harmonic pattern is now available, where this pattern remains valid as long as the metal is stable above 29.60. The pattern was not completed or confirmed until now, but silver is moving in line with Fibonacci which suits the rules of the mentioned harmonic pattern. Therefore, we expect the upside move to continue, affected by the formation of the CD leg of the harmonic structure.
The trading range for today is among the key support at 27.10 and key resistance now at 32.75.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
**New York Candlesticks**
| Support | 29.90 | 29.60 | 29.05 | 28.85 | 28.10 |
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| Resistance | 30.30 | 30.55 | 30.85 | 31.00 | 31.30 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying silver above 29.90, and take profit in stages at (30.85 and 32.10) and stop loss with 4-hour closing below 28.85 might be appropriate | ||||
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