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Technical Precious Metals
Written by article default Friday, 27 January 2012 08:57
Morning Report
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In line with yesterday's proposed bullish scenario, the metal inclined touching one of the most important barriers at 1730.00 as seen on the provided daily chart. Gold may retest the previous broken resistance -turned into support- around 1702.00 before moving higher once more classically targeting 1756.00. Stochastic and Vortex reinforce the suggested bullish scenario but breaching through 1665.00 will negate the bullishness.
The trading range for today is among the key support at 1665.00 and key resistance now at 1764.00.
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 | 1713.00 | 1702.00 | 1687.00 | 1673.00 | 1665.00 |
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| Resistance | 1720.00 | 1726.00 | 1744.00 | 1756.00 | 1764.00 |
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| Recommendation | Based on the charts and explanations above our opinion is, buying gold around 1702.00 targeting 1756.00 and stop loss below 1665.00 might be appropriate. | ||||
Silver
Morning Report
Silver is stable around 33.40 –mentioned in previous reports- yet below the top C of the harmonic Bat Pattern shown above. Pont C is the defining point to either extend the upside wave or reversing to the downside and that depends on a successful breach or failure to stabilize above those areas. Momentum indicators over daily basis are in clear overbought areas and that minimizes the chances for the breach, yet at the same time if the upside move continued and stability was seen above point C at 31.75 silver might ignore the overbought signal and resume the upside move. Therefore, we remain neutral for today.
The trading range for today is among the key support at 30.30 and key resistance now at 35.10.
The short-term trend is to the downside targeting 20.05 as far as areas of 38.00 remain intact with weekly closing.
*The chart above is based on NY time*
| Support | 32.75 | 32.40 | 32.10 | 31.60 | 31.30 |
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| Resistance | 33.40 | 33.75 | 34.25 | 34.60 | 35.10 |
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| Recommendation | Based on the charts and explanations above we recommend observing trading today awaiting more confirmations | ||||
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