Midday Report
Gold is trading in a narrow range due to the conflict between overbought signals on momentum indicators and the harmonic view due to the breach of the top C at 1763.00. The harmonic rules support the bullish potential to test areas of 1794.00 and 1828.00 since stability is above 1763.00 mentioned, yet we do not rule out heavy volatility and fluctuations and a possible downside correction due to the overbought state on momentum indicators.
The trading range for today is among the key support at 1735.00 and key resistance now at 1828.00.
The short-term trend is to the upside targeting 1945.00 per ounce as far as areas of 1475.00 remain intact with weekly closing.
| Support | 1777.00 | 1772.00 | 1768.00 | 1763.00 | 1754.00 |
| Resistance | 1785.00 | 1790.00 | 1794.00 | 1800.00 | 1810.00 |
| Recommendation | Our morning expectations remain valid | ||||
Silver
Midday Report
The situation for silver is critical as shown above. We can see the overbought signals on momentum indicators as well as silver trading at the key resistance for the downside wave that started from the top at 49.83, which resides with 127.2% Fibonacci correction of CD leg of the bullish harmonic Crab Pattern at 35.75. Breaching the aforementioned level will trigger a sharp bullish move targeting 38.30, yet at the same time, failure to stabilize above it will trigger a downside correction. We hold onto our positive morning expectations based n stability above 34.65, as stability above this level might help the breach of 35.75. The MA 10, 20 and 50 support the positive outlook.
The trading range for today is among the key support at 32.80 and key resistance now at 37.40.
The short-term trend is to the downside targeting 20.05 as far as areas of 38.00 remain intact with weekly closing.
*The chart above is based on NY time*
| Support | 35.10 | 34.65 | 34.40 | 34.00 | 33.75 |
| Resistance | 35.75 | 36.20 | 36.80 | 37.25 | 37.80 |
| Recommendation | Based on the charts and explanations above our opinion is buying silver around 35.10 and take profit in stages at 35.70, 36.20 and 36.80 and stop loss with four-hour closing below 34.40 might be appropriate | ||||
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