7 Jun 2013
Commodities Brief: Precious metals still range bound ahead of NFP
FXstreet.com (Barcelona) - Precious metals managed to finish the day higher, with gold closing up 0.78% at 1412 and silver edging out a small gain up 0.31% at 22.54
It should be noted advances were again capped near 1430 in gold, and 23.00 in silver. This has been the upper end of the trading range for precious metals since mid May. Initial resistance remains at 1431 (previous day high), followed by 1445 (the 45dma). First support sits at 1401 (the 9dma), followed by 1391 (previous day low). As for silver, first resistance remains at 23.00 (upper end of range), followed by 23.50 (previous support, now resistance). Initial support remains at 22.00 (bottom or range)
From a pattern perspective, it could be said both daily charts are still the process of forming ‘bear flag’ continuation patterns. In order to be confirmed, gold would need a close below 1390, and silver a close below 22. The measured move target for gold is down at 1280, while for silver the measured move target rests at 20.30.
It should be noted advances were again capped near 1430 in gold, and 23.00 in silver. This has been the upper end of the trading range for precious metals since mid May. Initial resistance remains at 1431 (previous day high), followed by 1445 (the 45dma). First support sits at 1401 (the 9dma), followed by 1391 (previous day low). As for silver, first resistance remains at 23.00 (upper end of range), followed by 23.50 (previous support, now resistance). Initial support remains at 22.00 (bottom or range)
From a pattern perspective, it could be said both daily charts are still the process of forming ‘bear flag’ continuation patterns. In order to be confirmed, gold would need a close below 1390, and silver a close below 22. The measured move target for gold is down at 1280, while for silver the measured move target rests at 20.30.