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Technical Precious Metals
Written by article default Wednesday, 25 January 2012 10:17
Morning Report
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Yesterday's weakness on the four-hour interval -check the previous report- was the main was reason that forced us to stay aside during the previous and Asian sessions. Now, we can see how Stochastic has overlapped bearishly over daily studies creating a negative divergence which may cause more downside actions. But, on the other side, the closing was achieved positively above SMA 50 -colored in red- thus; we will remain neutral over intraday basis. Of note, breaching through SMA 50 -vaued at 1651.00- will trigger a panic sell-off; whilst taking 1679.00 will assist bulls to dominate the movements softly targeting 1703.00 zones followed by 1725.00 areas.
The trading range for today is among the key support at 1607.00 and key resistance now at 1725.00.
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 | 1653.00 | 1650.00 | 1645.00 | 1635.00 | 1628.00 |
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| Resistance | 1670.00 | 1673.00 | 1679.00 | 1687.00 | 1695.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable setup presents itself to pinpoint the upcoming big move. | ||||
Silver
Morning Report
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The downside movement stopped, but we cannot confirm the end of the bearishness as silver is stable below 32.75, which represents the potential reversal zone of the Bat harmonic pattern, which started at X1 point, and also represents the potential reversal zone of the Deep Crab harmonic pattern, which started at X2 point. Our negative expectations remain as they are, but Stochastic is positive, which could trigger heavy fluctuations and maybe an upside correction to test areas around the resistance level of 32.20-75.
The trading range for today is among the key support at 30.30 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 | 31.60 | 31.30 | 31.00 | 30.85 |
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| Resistance | 32.40 | 32.75 | 32.95 | 33.40 | 33.75 |
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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 (31.30 and 30.30) and stop loss with 4-hour closing above 33.40 might be appropriate | ||||
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