Gold chart pattern
Bulls are running riot on the daily bar chart pattern of Gold. Geopolitical concerns, a severe hurricane (Irma) in Florida and a sliding US Dollar index combined to send gold's price soaring past the 1360 level on Fri. Sep 8.
Note how the zone between 1300 & 1310, which had acted as a strong resistance zone since Nov '16, has now turned into a support zone. Gold's price is trading well above its three rising EMAs in a bull market.
Overbought technical indicators and negative divergence visible on Slow stochastic (which failed to touch a new high with gold's price) triggered a corrective move with a downward 'gap' on Mon. Sep 11.
North Korea tensions have eased a bit. Irma was less severe than expected. The Dollar index has recovered somewhat. Expect more profit booking, and a pullback towards the 'Support/Resistance zone'.
On longer term weekly chart (not shown), gold’s price closed above its three weekly EMAs in bull territory. The impending 'golden cross' of the 50 week EMA above the 200 week EMA will technically confirm a return to a long-term bull market. Weekly MACD and Slow stochastic are looking overbought. RSI has moved down after facing resistance from the edge of its overbought zone.
Silver chart pattern
The following remark was made in the previous post on the daily bar chart pattern of Silver: "Any further rally towards 17.75-18 may invite bear selling and a pullback towards the 200 day EMA."
Note that silver's price rallied to touch 18.25 on Fri. Sep 8 before bears decided to step-in. The longer term 'Support/Resistance zone' between 18.50 & 18.75 was not tested.
Silver is trading above its three rising EMAs in bull territory. The 'golden cross' of the 50 day EMA above the 200 day EMA will technically confirm a return to a bull market.
Daily technical indicators are looking overbought. Slow stochastic is showing negative divergence by failing to touch a new high with silver's price. Expect more bear selling, and a pullback towards the 200 day EMA.
On longer term weekly chart (not shown), silver’s price retreated after facing strong resistance from its 200 week EMA, but closed above its 20 week and 50 week EMAs in a long-term bear market. Weekly MACD and RSI are in bullish zones. Slow stochastic is well inside its overbought zone and can trigger a pullback towards the 50 week EMA.
Bulls are running riot on the daily bar chart pattern of Gold. Geopolitical concerns, a severe hurricane (Irma) in Florida and a sliding US Dollar index combined to send gold's price soaring past the 1360 level on Fri. Sep 8.
Note how the zone between 1300 & 1310, which had acted as a strong resistance zone since Nov '16, has now turned into a support zone. Gold's price is trading well above its three rising EMAs in a bull market.
Overbought technical indicators and negative divergence visible on Slow stochastic (which failed to touch a new high with gold's price) triggered a corrective move with a downward 'gap' on Mon. Sep 11.
North Korea tensions have eased a bit. Irma was less severe than expected. The Dollar index has recovered somewhat. Expect more profit booking, and a pullback towards the 'Support/Resistance zone'.
On longer term weekly chart (not shown), gold’s price closed above its three weekly EMAs in bull territory. The impending 'golden cross' of the 50 week EMA above the 200 week EMA will technically confirm a return to a long-term bull market. Weekly MACD and Slow stochastic are looking overbought. RSI has moved down after facing resistance from the edge of its overbought zone.
Silver chart pattern
The following remark was made in the previous post on the daily bar chart pattern of Silver: "Any further rally towards 17.75-18 may invite bear selling and a pullback towards the 200 day EMA."
Note that silver's price rallied to touch 18.25 on Fri. Sep 8 before bears decided to step-in. The longer term 'Support/Resistance zone' between 18.50 & 18.75 was not tested.
Silver is trading above its three rising EMAs in bull territory. The 'golden cross' of the 50 day EMA above the 200 day EMA will technically confirm a return to a bull market.
Daily technical indicators are looking overbought. Slow stochastic is showing negative divergence by failing to touch a new high with silver's price. Expect more bear selling, and a pullback towards the 200 day EMA.
On longer term weekly chart (not shown), silver’s price retreated after facing strong resistance from its 200 week EMA, but closed above its 20 week and 50 week EMAs in a long-term bear market. Weekly MACD and RSI are in bullish zones. Slow stochastic is well inside its overbought zone and can trigger a pullback towards the 50 week EMA.
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