Friday, October 9, 2009

Technical Analysis for Precious Metals

Silver

After the sharp inclines that approached the projected technical target of yesterday's report, the bearish candlestick formation confirmed the first potential reversal zone-D- of the bearish harmonic structure as seen on the above four-hour chart. Moving freely below 127% Fibonacci level has signaled an intraday bearish scenario, supported by the negative signs appearing on the momentum indicators. Note that a breakout below 17.28 will accelerate the negative anticipation.

The trading range for today is among the key support at 16.65 and key resistance now at 18.50.

The general trend is to the upside as far as 10.95 remains intact with targets at 18.50.

Support: 17.50, 17.43, 17.35, 17.28, 17.15
Resistance: 17.65, 17.72, 17.83, 17.90, 18.00

Recommendation: Based on the charts and explanations above our opinion is, selling silver from 17.65 targeting 17.10 and stop loss above 18.10 might be appropriate.

Gold

After reaching our detected technical target of yesterday's harmonic bullishness at 1062 areas-check the analysis here- , the short term Elliott sequence came back into focus. We see on the provided four-hour chart that five impulsive waves might have been formed. Thus; the [A-B-C] correction is under way, targeting the psychological level of 1000.00 but 1030.00 is in need for re-testing first to confirm the count. RSI 14 supports the intraday bearish outlook while AROON is preparing for a trend change signal.

The trading range for today is among the key support now at 1006.00 and key resistance now at 1074.00.

The general trend is to the upside as far as 820.00 remains intact with targets at 1074.00.

Support: 1042.00, 1035.00, 1030.00, 1025.00, 1022.00
Resistance: 1049.00, 1053.00, 1058.00, 1062.00, 1074.00

Recommendation: Based on the charts and explanations above our opinion is, selling gold from 1049.00 targeting 1033.00 and stop loss above 1062.00 might be appropriate

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