Tuesday, May 20, 2014

Gold and Silver charts: an update

Gold Chart Pattern


An interesting tussle is going on between bulls and bears on the 6 months daily bar chart pattern of gold. The zone between 1260 and 1280 has continued to provide good support on the downside, but gold’s price is touching lower tops.

So, who is winning this particular battle? Bears seem to be gaining the edge. Note that all three EMAs are moving down while gold’s price is oscillating about its falling 20 day and 50 day EMAs. The past 10 trading sessions has seen just 2 up days.

Daily technical indicators are a bit bearish. MACD is touching its rising signal line in negative territory. RSI has slipped below its 50% level. Slow stochastic is seeking support from its 50% level. Bulls will try to defend the support zone between 1260-1280. But for how long?

On longer term weekly chart (not shown), gold’s price is trading below all three weekly EMAs in a bear market.

Silver Chart Pattern


The 6 months daily bar chart pattern of silver managed to rally past its falling 50 day EMA on intra-day basis after a month, but faced resistance at the 20 level and immediately encountered bear selling to drop below all three EMAs once again.

Daily technical indicators are looking bearish. MACD is above its rising signal line, but in negative territory. RSI managed to rise above its 50% level for the first time in 2 months, but could not sustain there for long. Slow stochastic is falling towards its 50% level.

All three indicators have formed bullish patterns of rising tops and rising bottoms, which may lead to another attempt at a rally past the falling 50 day EMA.

On longer term weekly chart (not shown), all three weekly EMAs are sliding down and silver’s price continues to trade below them in a bear market.

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