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Tuesday, March 17, 2015

Gold and Silver charts: an update

Gold Chart Pattern

Gold_Mar1615

The daily bar chart pattern of gold tried to cling on to the 1200 level for a few days, but the force of gravity (i.e. bear selling) pulled it all the way down to 1150 – where it is trying to find a temporary bottom.

All three technical indicators are inside their respective oversold zones – which may lead to an upward bounce. But this is not the time for bottom fishing. Bears appear to have a stranglehold on the chart.

The next positive trigger for gold bulls may be an expected interest rate increase by the US Fed. No one really knows when that will happen.

On longer term weekly chart (not shown), gold’s price closed well below its three weekly EMAs in a long-term bear market. Technical indicators are in bearish zones. The Nov ‘14 low is likely to be tested and breached.

Silver Chart Pattern

Silver_Mar1615

The daily bar chart pattern of silver breached the support level at 16 and dropped below 15.50. It is trying to find an intermediate bottom at 15.50.

Daily technical indicators are in the process of correcting oversold conditions, but their upward momentum looks weak. MACD is inside its oversold zone, but has stopped falling. RSI has bounced up from the edge of its oversold zone. Slow stochastic has just emerged from its oversold zone.

On longer term weekly chart (not shown), silver’s price is trading below all three weekly EMAs in a long-term bear market. Technical indicators are in bearish zones. A fall below 15 may test the Dec ‘14 low.

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