ANNOUNCING RE-OPENING OF PAID SUBSCRIPTIONS TO MY MONTHLY INVESTMENT NEWSLETTER
Give a boost to your portfolio with quality midcap and smallcap stocks. Contact mobugobu@yahoo.com for details. Subscriptions remain open till July 21, 2017.

Tuesday, July 4, 2017

Gold and Silver charts: bears gaining complete control

Gold chart pattern


The following comments appeared in the previous post on the daily bar chart pattern of Gold: "A technical bounce from the 200 day EMA is a possibility. Bears may use the opportunity to sell again."

Gold's price did bounce up after receiving support from its 200 day EMA, but faced strong resistance from its falling 20 day EMA and dropped sharply below all three EMAs to close below 1220 in bear territory.

A 'double top' reversal pattern (marked by T1 and T2), with target implications, has formed on the chart. The distance from the 'valley' to 'T2' (about 85 points) is the same distance gold's price can fall below the 'valley'

A test of the 1130 level - where gold's price made multiple bottoms in Dec '16 - is on the cards. 

The 'death cross' of the 50 day EMA below the 200 day EMA will technically confirm a return to a bear market. Bulls may try their best to prevent that.

Daily technical indicators are bearish and looking oversold. Slow stochastic has touched a higher bottom inside its oversold zone. The positive divergence can trigger a pullback towards the 200 day EMA.

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

Silver chart pattern



The following comment appeared in the previous post on the daily bar chart pattern of Silver: "A test of the May 9 low may be on the cards."

Silver's price rallied within a bearish 'flag' pattern and moved above its falling 20 day EMA to touch a high of 16.86 on Jun 29, but formed a 'reversal day' bar.

That triggered a sharp fall below the 'flag'. Silver's price tested and closed near the May 9 low of 16.06.

Daily technical indicators are looking bearish and showing downward momentum. Slow stochastic has touched a higher bottom, which may cause a pullback towards the 'flag'.

Expect bears to sell on every rise. A test of the Dec '16 low is a possibility.

On longer term weekly chart (not shown), silver’s price closed well below its three falling weekly EMAs in a long-term bear marketWeekly technical indicators are looking bearish and showing downward momentum.

No comments: