Gold chart pattern
The following comments had appeared in the previous post on the daily bar chart pattern of Gold: "The pullback rally has been accompanied by receding volumes. The rally may not last long. Another bear onslaught can occur at any time."
A sliding US Dollar index ensured that the rally continued till the first week of the New Year. It was good while it lasted. But all good things must come to an end.
Daily technical indicators are beginning to correct overbought conditions. 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.
On longer term weekly chart (not shown), gold’s price closed well above its three weekly EMAs in long-term bull territory. Weekly MACD and RSI are in bullish zones. Slow stochastic is inside its overbought zone, and can trigger a correction.
Silver chart pattern
The daily bar chart pattern of Silver followed in the footsteps of the yellow metal - rallying smartly above its three daily EMAs into bull territory.
Bears have jumped back into the fray after silver's price failed to close above the 17.30 level despite a couple of attempts. A pullback towards the 200 day EMA has started.
Daily technical indicators have started correcting overbought conditions. Silver's price may drop back inside bear territory soon.
On longer term weekly chart (not shown), silver’s price closed above its 20 week and 50 week EMAs, but below its sliding 200 week EMA in a long-term bear market. Weekly MACD is still in bearish zone. RSI has started moving down after crossing above its 50% level. Slow stochastic has entered its overbought zone, and can trigger a correction.
The following comments had appeared in the previous post on the daily bar chart pattern of Gold: "The pullback rally has been accompanied by receding volumes. The rally may not last long. Another bear onslaught can occur at any time."
A sliding US Dollar index ensured that the rally continued till the first week of the New Year. It was good while it lasted. But all good things must come to an end.
Daily technical indicators are beginning to correct overbought conditions. 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.
On longer term weekly chart (not shown), gold’s price closed well above its three weekly EMAs in long-term bull territory. Weekly MACD and RSI are in bullish zones. Slow stochastic is inside its overbought zone, and can trigger a correction.
Silver chart pattern
The daily bar chart pattern of Silver followed in the footsteps of the yellow metal - rallying smartly above its three daily EMAs into bull territory.
Bears have jumped back into the fray after silver's price failed to close above the 17.30 level despite a couple of attempts. A pullback towards the 200 day EMA has started.
Daily technical indicators have started correcting overbought conditions. Silver's price may drop back inside bear territory soon.
On longer term weekly chart (not shown), silver’s price closed above its 20 week and 50 week EMAs, but below its sliding 200 week EMA in a long-term bear market. Weekly MACD is still in bearish zone. RSI has started moving down after crossing above its 50% level. Slow stochastic has entered its overbought zone, and can trigger a correction.
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