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
Previous Post on gold and silver (1/24): Bears March On
- The bearish scenario materialized, and in a very well behaved manner (without overlapping waves).
- Our recent swing projection of 1323 was hit as the market was not supported until 1322.
- The 4H candle ahead of the US session is an engulfing marabuzo and points to further decline towards the 1315 level which is an important support.
- The RSI is turning lower after resolving oversold conditions, a break below 1323 should target 1315 in the near-term.
- Silver showed a bearish engulfing pattern ahead of the US session, and is likely to push lower towards 26.50 today in the US session.
- This is a support to monitor, but as long as the market continues to show stronger bearish candles, and keeps making lower highs and bottoms, the market continues to be in a downtrend.
- On the upside, the 28.00 level should provide resistance for a healthy decline for the rest of the week. A break above that then makes the market neutral.
- On the downside, a break below 26.50 targets the 25.00 level.
- The RSI continues to reflect the bearish mode after resolving oversold conditions in the previous session.
Will gold and silver bulls take back control? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist