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Technical Precious Metals
Written by article default Friday, 13 January 2012 10:56
Morning Report
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The sharp declines from yesterday's recorded high at 1662.00 proved the solidity of the pivotal resistance around 1665.00 which represents the B point of the suggested harmonic Crab pattern. Vortex indicator is on its way to reflect some kind of bearish tendency while Stochastic is currently drawing a negative crossover. Let us use the aforementioned technical factors to suggest a potential bearish wave today to form the CD leg of our harmonic formation. Of note, areas of 1628.00 should be cleared to confirm our scenario and 1665.00 is our risk limit.
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, selling gold cautiously below 1628.00 targeting 1565.00 and stop loss above 1665.00 might be appropriate. | ||||
Silver
Morning Report
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The metal approached the second target of the bullish Bat harmonic pattern, which represents 61.8% Fibonacci correction of the CD leg as shown above. Currently, Stochastic provides a negative crossover, while silver is stable below the exponential moving average 50 at 30.40, which drive us to remain neutral, where according to the harmonic analysis rules silver is expected to achieve more harmonic targets as long as the metal is stable above 38.2% Fibonacci correction at 29.05, but at the same time, Stochastic in addition to the failure of breaching the second target at 30.80 could trigger a downside movement.
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, we remain neutral due to the high risk associated to our expectations | ||||
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