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Technical Precious Metals
Written by article default Wednesday, 01 February 2012 07:17
Morning Report
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The overbought signs seen on Stochastic were not able to pressure the metal below 1735.00. Furthermore, ADX is still positive, but without showing any upside rebound. According to the harmonic analysis, we expect the metal to retest the top of (C) point around 1763.00, especially when the metal is stable above 88.6% Fibonacci correction of the CD leg of the bullish harmonic structure. In result, we expect an upside attempt today, but consolidation below 1735.00 again weakens the possibility of the upside move.
The trading range for today is among the key support at 1694.00and key resistance now at 1772.00.
The short-term trend is to the upside with steady weekly closing above 1475.00 targeting 1945.00.
| Support | 1735.00 | 1724.00 | 1718.00 | 1711.00 | 1702.00 |
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| Resistance | 1746.00 | 1750.00 | 1754.00 | 1763.00 | 1772.00 |
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| Recommendation | Based on the charts and explanations above, our opinion is buying gold around 1735.00, and take profit in stages at (1754.00 and 1763.00) and stop loss with 4-hour closing above 1718.00 might be appropriate | ||||
Silver
Morning Report
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The metal failed several time to settle above the top of (C) point of the harmonic structure shown above, where this failure is accompanied with a negative crossover seen on momentum indicators. Therefore, we expect the metal to retest the critical support of the upside move, which started at the bottom of (D) point, and in result we expect a downside movement to test areas between 32.40 and 32.10. A breach of these levels could support the downside movement to extend further.
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 with steady weekly closing below 38.00 targeting 20.05.
**New York Candlesticks**
Note: Buying Gold and Selling Silver could be irrational, but this chart of Gold/Silver explains our suggested intraday moves.
| Support | 33.00 | 32.75 | 32.40 | 32.10 | 31.60 |
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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, our opinion is selling silver below 33.40, and take profit in stages at (32.40 and 31.60) and stop loss with 4-hour closing above 34.25 might be appropriate | ||||
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