Gold chart pattern
The following remarks were made in the previous post on the daily bar chart pattern of Gold: "Gold's price may seek support from the zone between 1300-1310. But the support is likely to fail because the US Dollar index is recovering."
Gold's price did seek support from the zone between 1300-1310. The support held. Gold's price bounced up to touch a high of 1345 on Jan 16 before retreating a little.
The support was expected to fail. What happened? No prizes for guessing. The US Dollar index plunged to the 90 level, where it is currently hovering.
A bit of caution is advised for gold bulls. Daily technical indicators are in the process of correcting overbought conditions. Note that Slow stochastic showed negative divergence by touching a lower top inside its overbought zone.
All three EMAs are rising, and gold's price is trading above them in a bull market. Strong volumes on recent down-days indicate that bears are active.
On longer term weekly chart (not shown), gold’s price closed above its three weekly EMAs in long-term bull territory, but formed a 'reversal' bar (higher high, lower close). Weekly MACD and RSI are in bullish zones. Slow stochastic is inside its overbought zone. Only MACD is showing slight upward momentum.
Silver chart pattern
The following remarks appeared in the previous post on the daily bar chart pattern of Silver: "A pullback towards the 200 day EMA has started...Silver's price may drop back inside bear territory soon."
Despite a couple of intra-day falls below the 200 day EMA into bear territory, bulls managed to defend the 200 day EMA well. Bears ensured that the 'golden cross' of the 50 day EMA above the 200 day EMA, which technically confirms a return to a bull market, remained elusive.
Daily technical indicators are showing downward momentum. MACD and RSI are still in bullish zones, but Slow stochastic has dropped inside bearish zone. A slide in silver's price appears likely.
On longer term weekly chart (not shown), silver’s price closed just above its 20 week and 50 week EMAs, but below its sliding 200 week EMA in a long-term bear market. Weekly MACD and RSI are in neutral zones. Slow stochastic has slipped down from its overbought zone.
The following remarks were made in the previous post on the daily bar chart pattern of Gold: "Gold's price may seek support from the zone between 1300-1310. But the support is likely to fail because the US Dollar index is recovering."
Gold's price did seek support from the zone between 1300-1310. The support held. Gold's price bounced up to touch a high of 1345 on Jan 16 before retreating a little.
The support was expected to fail. What happened? No prizes for guessing. The US Dollar index plunged to the 90 level, where it is currently hovering.
A bit of caution is advised for gold bulls. Daily technical indicators are in the process of correcting overbought conditions. Note that Slow stochastic showed negative divergence by touching a lower top inside its overbought zone.
All three EMAs are rising, and gold's price is trading above them in a bull market. Strong volumes on recent down-days indicate that bears are active.
On longer term weekly chart (not shown), gold’s price closed above its three weekly EMAs in long-term bull territory, but formed a 'reversal' bar (higher high, lower close). Weekly MACD and RSI are in bullish zones. Slow stochastic is inside its overbought zone. Only MACD is showing slight upward momentum.
Silver chart pattern
The following remarks appeared in the previous post on the daily bar chart pattern of Silver: "A pullback towards the 200 day EMA has started...Silver's price may drop back inside bear territory soon."
Despite a couple of intra-day falls below the 200 day EMA into bear territory, bulls managed to defend the 200 day EMA well. Bears ensured that the 'golden cross' of the 50 day EMA above the 200 day EMA, which technically confirms a return to a bull market, remained elusive.
Daily technical indicators are showing downward momentum. MACD and RSI are still in bullish zones, but Slow stochastic has dropped inside bearish zone. A slide in silver's price appears likely.
On longer term weekly chart (not shown), silver’s price closed just above its 20 week and 50 week EMAs, but below its sliding 200 week EMA in a long-term bear market. Weekly MACD and RSI are in neutral zones. Slow stochastic has slipped down from its overbought zone.
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Gold hits 1-1/2-year high as dollar slumps to three-year low
http://www.moneycontrol.com/news/business/markets/gold-hits-1-12-year-high-as-dollar-slumps-to-three-year-low-2490953.html
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