Midday Report
Gold declined sharply during the previous session, approaching the sensitive support zones of 1653.00 as seen on the subsidiary four-hour chart. The bearish candlestick formation may assist it to take this support zones during the next session. Anyway, we hold onto our bearish anticipations for the rest of the day supported by the following technical factors:
- The major double top pattern.
- The minor rising wedge pattern-continuation for the downtrend started at 1920.00 areas-.
- The bearishness on Stochastic.
Invalidation of this classical scenario occurs when the metal penetrates the neckline areas around 1702.00.
The trading range for today is among the key support at 1615.00 and key resistance now at 1728.00.
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 | 1648.00 | 1635.00 | 1615.00 | 1590.00 |
| Resistance | 1665.00 | 1673.00 | 1680.00 | 1687.00 | 1695.00 |
| Recommendation | Based on the charts and explanations above our opinion is, selling gold with a breakout below 1653.00 targeting 1575.00 and stop loss above 1702.00 might be appropriate. | ||||
Silver
Midday Report
Silver breached the awaited support level which is a horizontal support alongside the ascending support we mentioned previously, the metal printed an hourly closing below 31.25, however we prefer at least one more hour of trading to settle below the level to give our bearish scenario more potential. Trading should remain below the mentioned support area and below 31.60 for our expectations to remain valid.
The trading range for the day is among the key support at 29.00 and key resistance now at 33.00.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 30.75 | 30.20 | 29.40 | 28.75 | 28.40 |
| Resistance | 31.25 | 31.55 | 32.00 | 32.60 | 33.00 |
| Recommendation | Based on the charts and explanations above, we recommend selling silver around 31.25 targeting 30.75 and 29.75, stop loss with 4-hour closing above 31.60 might be appropriate. | ||||
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