Morning Report
The technical secret behind yesterday's collapse could be seen on the four-hour chart since the metal has met the key resistance level of 1755.00 when Stochastic overlapped negatively inside overbought areas. Now, we believe that gold is on its way to breach 50% Fibonacci retracement of the upside wave from 1603.00 to 1802.00 at 1703.00 after some kind of fluctuation, supported by the ceiling of SMA 20 and SMA 50. Finally, the secondary image of the daily studies reflects the strength of the bearishness as it engulfed the previous two days incline.
The trading range for today is among the key support at 1650.00 and key resistance now at 1765.00.
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 | 1703.00 | 1695.00 | 1687.00 | 1673.00 | 1665.00 |
Resistance | 1715.00 | 1720.00 | 1728.00 | 1735.00 | 1748.00 |
Recommendation | Based on the charts and explanations above our opinion is, selling gold below 1720.00 targeting 1650.00.00 and stop loss above 1765.00 might be appropriate. |
Silver
Morning Report
Silver reversed to the downside affected by the stability below the level of 32.95 mentioned before. The rising wedge pattern (bearish technical pattern) is still effective and could force the downside movement to extend further. Stochastic is negative, while the relative strength index is also trading below the 50-point level.
The trading range for today is among the key support at 29.55 and key resistance now at 33.75.
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact.
**New York Candlesticks**
Support | 31.60 | 31.25 | 30.95 | 30.50 | 30.30 |
Resistance | 32.10 | 32.60 | 32.95 | 33.05 | 33.50 |
Recommendation | Based on the charts and explanations above, our opinion is selling silver around 32.10, and take profit in stages at (31.25 and 29.55) and stop loss with 4-hour closing above 33.05 might be appropriate |
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