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Tuesday, January 17, 2017

Gold and Silver charts: bulls fight back but face strong resistance zones

Gold chart pattern


What had looked like a technical bounce from the Dec '16 low on the daily bar chart pattern of Gold turned into a sharp rally of about 80 points. 

Gold's price surged past its 20 day and 50 day EMAs on short covering and some value buying before running into the long-term 'support-resistance' zone between 1200 and 1220.

The 200 day EMA is still falling, and gold's price is trading well below it in a bear market.

Daily technical indicators are in bullish zones but not showing much upward momentum. Slow stochastic is inside its overbought zone, and may trigger a correction.

On longer term weekly chart (not shown), gold’s price has closed below all three weekly EMAs in a long-term bear market, despite rallying for two weeks with good volume support. Weekly technical indicators are correcting oversold conditions but remain in bearish zones. 

Silver chart pattern


The daily bar chart pattern of Silver tried to play catch-up with gold's chart, but after crossing above its 20 day EMA the rally stalled at the 50 day EMA - just below the 'support-resistance' zone between 17 and 17.50.

Daily MACD and RSI are in neutral zones and not showing much upward momentum. Slow stochastic is inside its overbought zone and turning down.

The short-covering rally, triggered by positive divergences visible on all three daily technical indicators (which touched higher bottoms when silver's price dropped lower in Dec '16), may have already come to an end. 

On longer term weekly chart (not shown), silver’s price rallied for two weeks but closed below its three weekly EMAs in a long-term bear market. Weekly technical indicators are correcting oversold conditions but remain in bearish zones.

1 comment:

Subhankar said...

Gold slips from eight-week high as inflation data lifts dollar

https://in.finance.yahoo.com/news/trump-policy-concerns-keep-gold-near-8-week-040611104--finance.html