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
- Gold is about to test last week's high as it has been consolidating. This consolidation held support near 1392, and threatens to resume the prior week's uptrend.
- The RSI in the daily chart has yet to break above 70 to show strong bullish momentum.
- The RSI in the 4H chart already shows strength in the short and medium term. The RSI was overbought, which is a sign of bullish strength. After resolving the overbought conditions, the RSI remained above 40, even 50. Now that it is rallying above 60, the momentum is starting to return bullish.
- The bullish target is the historic high at 1430. A bearish scenario opens up below 1392 towards 1368.
- Silver has also been consolidating after a sharp rally in February that capped off on the 22nd. We saw a Gartley last week, and the market indeed rallied after this retracement pattern.
- Now it has started the week breaking above the declining trendline, and the 4H RSI is also returning above 60. These are signs of bullish continuation.
- The 34.20 high is the target at the moment in the short-term. Above that, we see the 36.00 level as the next fibonacci extension target.
- The bearish scenario opens up below the 31.22/31.00 support. 29.50 would be the first target below that. If 29.50 holds, the market is still bullish.
Will gold or silver top or are the bulls back in control? We would love to hear what you think.
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