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 Gold and Silver Update
- Gold has developed the bearish correction as anticipated in recent posts.
- However, we are now getting close to the area of support near 1330. The 1315 level is the next expected support.
- Look for the market to create a bottom around here.
- But if price action accelerates downwards, we are either exhausting a correction decline, or expanding it. The clue will be in the subsequent rally (if there is a pullback).
- A rally that breaks the declining trendline seen in the 4H chart should suggest the bulls taking back control, especially if the candlestick in the daily is larger than all the ones during the correction decline. An early sign of a bullish continuation would be a break above 1355.
- So to start next week, expect some further decline into the 1330 area, and start to monitor for bottoming action.
- The strategy for gold should be similar to that of silver during this correction period.
- For silver, we should look at 26.50 level as an important support, and 25.00 as the next support with even greater significance.
- If the market rallies back above 28.0, we should start considering bullish continuation. If it breaks the declining trendline above that, we have a sign of bullish continuation, but we would have to gauge the momentum or strength of this rally.
- Just like gold, let's anticipate some further decline, and bottoming action starting next week as the market nears 26.50.
What else needs to happen for the gold and silver bulls to take back control of the markets? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist