Morning Report
Sharp inclines took the metal above the previously detected neckline for the huge reversal double top pattern which we depended on it before achieving the collapse towards 1533.00 zones. Was the effect of this reversal pattern limited at 1533.00 earlier due to yesterday's positive closing around 1704.00? We will not judge precipitately since SMA 50 represents a very hard technical obstacle over daily studies; whilst an overbought case started to appear on the four-hour time scale. To make sure that yesterday's breakout is not a false one; we will stay aside today until the metal proves the bullish sign appearing on AROON indicator. Note that, breaching through 1740.00 will bring an aggressive upside wave.
The trading range for today is among the key support at 1635.00 and key resistance now at 1785.00.
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 | 1702.00 | 1695.00 | 1687.00 | 1673.00 | 1665.00 |
| Resistance | 1728.00 | 1735.00 | 1755.00 | 1762.00 | 1785.00 |
| Recommendation | Based on the charts and explanations above our opinion is, staying aside until an actionable technical setup presents itself to pinpoint the next big move. | ||||
Silver
Morning Report
Silver inclined sharply and was able to breach the level of 32.80-95. Currently, the metal trades around a critical level, which is the 50% Fibonacci correction as shown above on the chart. We expect silver to extend the upside move, but momentum indicators are excessively overbought, which could trigger heavy fluctuations and maybe a sharp downside correction before the new bullish wave.
The trading range for today is among the key support at 30.25 and key resistance now at 35.10.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
| Support | 32.80 | 32.60 | 32.10 | 31.60 | 31.25 |
| Resistance | 33.45 | 34.00 | 34.40 | 34.80 | 35.10 |
| Recommendation | Based on the charts and explanations above, we recommend buying silver around 32.60 and take profit in stages at (33.35 and 34.00) and stop loss below 31.10 might be appropriate. | ||||
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