The daily bar chart pattern of Gold corrected sharply below its 20 day and 50 day EMAs but bounced up with strong volumes after receiving good support from the 1200 level.
The 200 day EMA is rising. Gold's price is trading above all three EMAs in bull territory. The dip provided a buying opportunity.
Daily technical indicators have corrected oversold conditions but have not quite turned bullish yet. Both MACD and Slow stochastic formed bullish 'rounding bottom' patterns inside their oversold zones. RSI is moving sideways just above its 50% level.
Disappointing non-farm payrolls data in USA encouraged gold bulls to fight back after a sharp month-long price correction.
On longer term weekly chart (not shown), gold’s price dropped below its 200 week EMA and stayed in long-term bear territory for three weeks. However, it has bounced up after receiving support from its rising 50 week EMA. Weekly technical indicators have corrected overbought conditions. Another attempt to break out above the 200 week EMA is likely.
Silver chart pattern
The following remarks were made in the previous post on the daily bar chart pattern of Silver: "Expect some more correction or consolidation. Dips are providing adding opportunities."
Silver's price corrected sharply below its 20 day and 50 day EMAs but bounced up with good volumes after testing support from its rising 200 day EMA, and closed exactly on its 20 day EMA.
Daily technical indicators are in bearish zones, but have corrected oversold conditions. The correction provided a buying opportunity to those who missed buying during the upward breakout in Apr '16.
On longer term weekly chart (not shown), silver’s price bounced up after receiving support from its rising 50 week EMA. It is trading above its 20 week and 50 week EMAs but well below its falling 200 week EMA in a long-term bear market. Weekly technical indicators are in bullish zones after correcting overbought conditions.