Posted by Francis Koh on 12 Jun 2014

Technical Analysis for Precious Metals

By examening Linear Regression Indicators, we notice that they form good support levels that are trading close to the metal. AROON Indicator is also showing the bullish strength and MACD is still trading positively.

The referred to catalysts indicates that the upside move could extend based on the metals' ability to breach 19.35. A break above the previous level triggers another bullish wave that reaches 19.55. Of note, breaking 18.89 weakens the bullish possibility.

Support: 19.21, 19.13, 19.07, 19.00, 18.89
Resistance: 19.35, 19.45, 19.55, 19.64, 19.73

Recommendation Based on the above, buy silver around 19.20 targeting 19.35 then 19.45 and 19.55 with stop-loss below 18.89

Gold

The metal inched higher and is trading above Linear Regression Indicators and slightly above 61.8% correction at 1260.90 which is an intraday interval, as we depended on this level earlier to keep our negative expectations. Stabiliing above Linear Regression Indicators and the referred to correction are positive, especially if accompanied by the positive crossover on MACD and a sharp drop in the bearish strength as showing on AROON Indicator.

Despite the positive catalysts, we cannot bet on an upside move now as th eprice is still within an overall downside move, forcing us to wait before moving to positivity. Hence, we remain neutral today waiting for confirmation signals and we will monitor the price at 1260.90.

Support: 1260.90, 1256.20, 1250.80, 1244.50, 1241.00
Resistance: 1266.55, 1272.00, 1278.00, 1285.15, 1293.00

Recommendation Based on the above, we prefer to remain neutral waiting for confirmation signals.

Read More: www.oilngold.com/analysis/commodity-technical-analysis/technical-analysis-for-precious-metals--2014061128183/


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