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Tuesday, July 7, 2015

Gold and Silver charts: slip slidin’ away

Believe we're gliding down the highway
When in fact we're slip slidin' away – Paul Simon

Gold Chart Pattern

Gold_Jul0615

After briefly crossing above its three EMAs into bull territory and touching a high of 1232 on May 18 ‘15, the daily bar chart pattern of gold resumed its down trend.

A bearish pattern of ‘lower tops and lower bottoms’ has formed. Gold’s price is trading below all three EMAs in a bear market that is entering its 34th month.

Daily technical indicators are looking bearish. MACD is below its signal line in negative zone. RSI is below its 50% level. Slow stochastic is inside its oversold zone.

Avoid bottom fishing. Volume bars clearly show that brief spells of buying are being immediately followed by selling.

On longer term weekly chart (not shown), all three weekly EMAs are moving down, and gold’s price is trading below them in a long-term bear market. Weekly technical indicators are in bearish zones.

Silver Chart Pattern

Silver_Jul0615

The following comments appeared in the previous post on the daily bar chart pattern of silver: “The bullish pattern of ‘higher tops and higher bottoms’ from the Mar ‘15 low of 15.25 remains in force – but may not be for long. Bears are still ruling the chart.”

Silver’s price has dropped below the Apr 24 ‘15 low of 15.55 and touched a low of 15.40 on Jun 30 ‘15 – negating the bullish pattern and establishing a bearish pattern of ‘lower tops and lower bottoms’.

All three EMAs are falling and silver’s price is trading below them in a bear market.

Daily technical indicators are in bearish zones, but showing some signs of upward momentum. MACD is trying to move up towards its signal line in negative zone. RSI has bounced up strongly from the edge of its oversold zone. Slow stochastic is trying to emerge from its oversold zone.

On longer term weekly chart (not shown), silver’s price is trading below its three weekly EMAs in a long-term bear market. Technical indicators are in bearish zones.

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