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Technical Precious Metals
Written by article default Monday, 23 January 2012 08:57
Weekly Report 23/01 – 27/01/ 2012
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With a daily closing above the initial resistance -turned into support- of 1665.00, the metal found a rational reason to continue its upside recovery. Actually, we can also see SMA 50-colored in red- carrying the bullishness from below. Actually, there are signs of weakness over shorter time frames such as the four-hour interval and it may cause some kind of fluctuation during the upcoming sessions. But, the bullish scenario anticipated for this week will not be changed unless the metal takes the weekly support at 1628.00. Ultimately, breaching 1703.00 will bring more buying interests towards 1725.00 zones.
The trading range for this week is among the key support at 1574.00 and key resistance now at 1762.00.
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 | 1665.00 | 1653.00 | 1645.00 | 1628.00 | 1615.00 |
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| Resistance | 1673.00 | 1687.00 | 1703.00 | 1713.00 | 1725.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1665.00 targeting 1725.00 and stop loss below 1628.00 might be appropriate. | ||||
Silver
Weekly Report 23/01 – 27/01/ 2012
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The metal is within the formation of the Deep Crab harmonic pattern, and currently momentum indicators are within overbought areas accompanied with the metal approaching the potential reversal zone of the harmonic pattern. We expect the metal to start a downside correctional movement, which remains strong as long as the metal is stable below 32.75 and remains valid with 4-hour closing below 33.40.
The trading range for this week is among the key support at 29.90 and key resistance now at 34.60.
The short-term trend is to the downside with steady weekly closing below 38.00 targeting 20.05.
**New York Candlesticks**
| Support | 32.10 | 31.80 | 31.25 | 30.85 | 30.30 |
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| Resistance | 32.75 | 32.95 | 33.40 | 33.75 | 34.00 |
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| Recommendation | Based on the charts and explanations above, our opinion is selling silver around 32.40, and take profit in stages at (31.25 and 30.30) and stop loss with 4-hour closing above 33.40 might be appropriate | ||||
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