Shortly after the previous post, the daily bar chart pattern of Gold crossed and closed above its 200 day EMA, but immediately faced selling pressure and corrected down to test support from its rising 20 day EMA.
The next leg of the bull rally has propelled gold's price past the 1250 level. The possibility was mentioned in the previous post.
All three daily technical indicators are looking overbought, and showing negative divergences by failing to touch new highs with gold's price. That can trigger some correction or consolidation.
The 'golden cross' of the 50 day EMA above the 200 day EMA which technically confirms a bull market, is still awaited.
On longer term weekly chart (not shown), gold’s price has closed just above its 200 week EMA in long-term bull territory after four months. Weekly technical indicators have turned bullish, but Slow stochastic is overbought and can trigger a correction.
Silver chart pattern
The daily bar chart pattern of Silver has rallied splendidly during the month of Feb '17 - soaring past its 200 day EMA to reach the 18.50 level after more than three months.
The 50 day EMA has just about managed to cross above the 200 day EMA - the 'golden cross' technically confirming a return to a bull market.
All three daily technical indicators are inside their overbought zones. Expect some resistance from the zone between 18.75 and 19 - and some correction or consolidation.
On longer term weekly chart (not shown), silver’s price has closed well above its 20 week and 50 week EMAs but just below its 200 week EMA in a long-term bear market. Weekly technical indicators are looking bullish. Slow stochastic is overbought and can trigger a correction.