In line with our morning scenario, the metal started to correct slightly after recording a new all-tine high around 1894.00 zones. The expected mild correction is needed in order to relieve momentum indicator before resuming the bullishness expected for the coming sessions. Our outlook is chiefly based on the suggested Elliott count where the third wave might be in progress. Technical targets reside at 1945.00-1946.00, where 161.8% Fibonacci projection of the internal third wave exists.
The trading range for today is among the key support at 1836.00 and key resistance now at 1910.00.
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.
|Recommendation||Based on the charts and explanations above our opinion is, buying gold around 1868.00 targeting 1945.00 and stop loss below 1825.00 might be appropriate.|
Silver is stable above 43.00, which is a positive sign reflecting the strength of the upside movement, which negates the overbought sign seen on momentum indicators. In fact, forming the suggested Bat harmonic pattern is still possible, however, corrections and heavy fluctuations are also possible, but the upside move remains valid as long as the metal is stable above 41.70.
The trading range for today is among the key support at 39.75 and key resistance now at 46.85
The short-term trend is to the downside targeting 26.65 as far as areas of 48.50 remain intact with weekly closing.
|Recommendation||Based on the charts and explanations above, we recommend buying silver around 42.75 and take profit in stages at (44.35 and 45.85) and stop loss with daily closing below 41.70 might be appropriate.|