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 (1/26): Gold and Silver Dig at Support Levels Further
- The bearish scenario did not pan out as we anticipated yesterday, but the rally yesterday failed to even test the 1355 level, a break above which would suggest a possible end to the current decline.
- Instead the market failed to break even test the high from the previous consolidation zone. The 4H chart shows the RSI making a new high, but price failing to do so.
- This suggests another swing down, with 1318 target in sight. Remember 1315 is our anticipated level of support, below which, we might see an accelerated decline. A failure to reach our target could reflect exhaustion, in which case you should be be on a lookout for gold bulls to attempt a rebound from this area towards the 1380, but again with 1355 as an important resistance to test first area.
- Silver also shows a negative reversal signal, pointing towards 26.50, below which we can see 25.00 as target.
- The 28.00 is the threshold for a rally within the bearish context.
- A failure to reach 26.50 would reflect exhaustion, and a break above 28.00 would then open up a bullish scenario towards the 29.00 area.
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