Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
- The rally in gold has accelerated and established all time high at 1440.
- The market sees a bearish divergence, and there is a slight correction so far. This correction is supported by the 1418 pivot, just above the 50% retracement.
- If the market reaches 61.8%, we would be testing the rising channel support.
- Also of the RSI reaches the previous low and the market does not reach 1392 yet, we have a positive reversal. So, if the market shows signs of resuming the uptrend before the RSI breaks below 40, and before price touches 1392, we should have another rally swing, which could have equality with the latest swing from 1392 to 1440.
- Silver is still bullish, but the market is seeing a bearish divergence after breaking above the previous high near 34.20. Now this is the support pivot.
- The rally missed the channel resistance so it gives a hint that the market might fall back below the channel support.
- We see that the channel support is near 33.50, so if the 34.20 breaks, this might be the next support for a the correction decline.
- However a break below that and then below 33.00 (61.8% retracement), can bring the pair down to the 2/24 low of 31.70, but as long as the RSI is above 40, the bullish momentum is intact.
- The uncertainty in the Middle East and North Africa Region has been attributed to the flight to safety and thus a rally in precious metals like gold and silver.
Will gold or silver top or are the bulls back in control? We would love to hear what you think.
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