Tuesday, October 9, 2018

Gold and Silver charts: bears selling on every rise

Gold chart pattern

The daily bar chart pattern of Gold has been consolidating sideways with a slight downward bias for the past seven weeks. The sliding 50 day EMA provided resistance, while the 1185 level provided support.

Gold's price has been oscillating about its 20 day EMA, and is trading below its three EMAs in a bear market. Strong volumes on recent down days show that bears are in full control of the chart.

Daily technical indicators are looking bearish and showing downward momentum. MACD is about to cross below its signal line in bearish zone. RSI and Slow stochastic are falling below their respective 50% levels. Expect the sideways consolidation to continue a bit longer.

The US Dollar index has been rising for the past two weeks, keeping gold's price on a tight leash. 

On longer term weekly chart (not shown), gold’s price closed well below its three weekly EMAs in long-term bear territoryThe 'death cross' of the 50 week EMA below the 200 week EMA has technically confirmed a long-term bear market. Weekly technical indicators are moving sideways in bearish zones.

Silver chart pattern

In the previous post on the daily bar chart pattern of Silver, a bearish 'rising wedge' pattern was forming. A downward breakout was expected. Instead of a 'wedge', the pattern evolved into a bearish 'flag' from which a 'false' upward breakout occurred.

Silver's price moved above its sliding 50 day EMA but stopped just short of the 14.80 level. Bears 'sold on rise'. Silver's price dropped to close below its three EMAs in bear territory.

Daily technical indicators have turned bearish and are showing downward momentum. MACD faced resistance from its '0' line and turned down. RSI has dropped below its 50% level. Slow stochastic is following suit after forming a 'double top' reversal pattern.

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 in their respective bearish zones after correcting oversold conditions.

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