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Tuesday, September 15, 2015

Gold and Silver charts: an update

Gold chart pattern

Gold_Sep1415

The following comments appeared in the previous post on the daily bar chart pattern of gold: “Volumes have trailed off, indicating lack of sufficient buying interest. Expect lower levels soon.” 

Gold’s price rose past its 20 day and 50 day EMAs but touched a lower intra-day high of 1148 on Tue. Sep 1. The down move resumed with increasing volumes. Gold’s price dropped to the 1100 level, where it is trying to find a temporary bottom.

Daily technical indicators are in bearish zones. All three EMAs are falling again and gold’s price is trading below them in a bear market. Lower levels are likely.

On longer term weekly chart (not shown), gold’s price closed below all three weekly EMAs in a long-term bear market. Weekly technical indicators are in bearish zones and showing downward momentum.

Silver chart pattern

Silver_Sep1415

The daily bar chart pattern of silver rose above its falling 20 day EMA on five straight trading sessions, but could not cross above the 15 level or its falling 50 day EMA.

Bullish enthusiasm faded soon. Silver’s price has dropped below all three EMAs in bear territory.

Daily technical indicators are in bearish zones. MACD has crossed below its signal line. RSI faced resistance from its 50% level and has started falling. Slow stochastic is moving sideways with a slight upward bias.

The Aug ‘15 low of 13.90 may get tested and breached.

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 and sliding down.

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