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Technical Precious Metals
Written by article default Tuesday, 17 January 2012 07:20
Morning Report
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The metal has moved mildly to the upside during the Asian session but trading continued below SMA 50 and below the initial resistance of 1665.00 where B point of the suggested Crab pattern exists. In the interim, SMA 50 -colored in red- is covering the movements as well but the positivity on Vortex in addition to the shaky sign of Stochastic are reasons that force us to stay aside today; noting that a daily closing above 1665.00 will damage our harmonic structure. On the downside, clearing 1628.00 will activate the bearishness of the CD leg.
The trading range for today is among the key support at 1607.00 and key resistance now at 1703.00.
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 | 1650.00 | 1645.00 | 1635.00 | 1628.00 | 1615.00 |
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| Resistance | 1665.00 | 1673.00 | 1687.00 | 1695.00 | 1703.00 |
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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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Silver inclines gradually and Stochastic is positive after it failed to breach the 50-points level, while RSI is also positive and trading above the 50-point level. The bullish Bat harmonic pattern is still valid, which could support the upside move to continue towards the second target of the pattern at 30.80 as shown above. A breach of the mentioned level could extend the bullish targets towards 32.10.
The trading range for today is among the key support at 28.10 and key resistance now at 32.75.
The short-term trend is to the downside with steady weekly closing below 38.00 targeting 20.05.
**New York Candlesticks**
| Support | 29.90 | 29.60 | 29.05 | 28.85 | 28.10 |
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| Resistance | 30.55 | 30.85 | 31.00 | 31.30 | 31.60 |
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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 | ||||