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
- Yesterday's Forex Video Tchnical Update with gold and silver noted a possible bearish continuation after the current corrective rally.
- The corrective rally is not over for gold. We are now at 61.8% retracement, and the RSI in the 1H chart continues to show bearish divergence. The RSI in the 4H chart remains below 60.
- So even though this rally extended, it is well within the context of a correction, waiting for topping and a bearish kick to start the bearish continuation scenario.
- If the market breaks above 1378 and the declining resistance seen in the 4H chart, the bearish scenario is in trouble.
- For the bearish scenario to reopen, we need to break below below at least 1365, and the rising channel seen in the 1H chart. Then upon a break below 1355, we are targeting 1330 area.
- Silver has been a bit more reluctant to continue south.
- Unlike gold, silver extended this rally to 78.6% retracement of the latest downswing. (gold was at 61.8%).
- The price action also break above a declining trendline seen in the 4H chart.
- Also, the 4H RSI in silver broke above 60.
- Nonetheless, price action has stalled int he US session, and might reverse. With a close in the 1H chart below 29.07, we should see a decline towards 28.70 area. A break below that targets 28.00.
- The upside is a bullish continuation towards 29.80 - 30.00. This is a previous high and 61.8% retracement of the entire downswing since the start of 2011.
Are the precious metal plays going to be less attractive this year? We would love to hear what you think.
Subscribe and become a member to share your views and join live discussions as well as webinars about the markets.
Fan Yang CMT
Chief Technical Strategist
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.