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Tuesday, May 23, 2017

Gold and Silver charts: bulls fight back after strong bear attacks

Gold chart pattern


Oversold technical indicators on the daily bar chart pattern of Gold aided a strong fightback by bulls.

Gold's price climbed above its three EMAs into bull territory, but is facing resistance from the 1265 level (which happens to be its Feb 27 '17 top).

Daily technical indicators have turned bullish. MACD has crossed above its signal line in bearish zone. RSI has moved above its 50% level. Slow stochastic has risen to the edge of its overbought zone.

A convincing move above 1265 can lead to a test of the Apr 17 top. Bears may use the rise to sell again.

On longer term weekly chart (not shown), gold’s price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are in neutral zones but showing a bit of upward momentum.

Silver chart pattern


Heavily oversold technical indicators had led to the following comment in the previous post on the daily bar chart pattern of Silver: "A pullback rally towards 16.75 is a possibility. Bears may use any rally to sell again."

The pullback rally climbed above the 20 day EMA and continued up to 17.20 - where it faced strong resistance from the falling 50 day EMA. 

The 'death cross' of the 50 day EMA below the 200 day EMA has technically confirmed a return to a bear market. Expect bears to start selling at any time.

Daily technical indicators have turned bullish. MACD has crossed above its signal line in bearish zone. RSI has just crossed above its 50% level. Slow stochastic is rising towards its overbought zone.

Silver's price will require a strong move above its sliding 200 day EMA to escape from the bear stranglehold on the chart.

On longer term weekly chart (not shown), silver’s price faced resistance from its entangled 20 and 50 week EMAs, and closed below its three weekly EMAs in a long-term bear marketWeekly technical indicators are in bearish zones but showing slight upward momentum.

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