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Tuesday, November 17, 2015

Gold and Silver charts: an update

Gold chart pattern

Gold_Nov1615

The daily bar chart pattern of gold shows a sharp, high-volume drop below the 1100 level, which had acted as a support two months back.

Gold’s price dropped further to test its Jul ‘15 low of 1074, before bouncing up to close above the Jul-Aug ‘15 support level of 1080.

All three EMAs are falling, and gold’s price is trading well below them in a bear market.

Technical indicators are inside their respective oversold zones. If a technical bounce occurs, the zone between 1100 and 1110 is likely to act as a resistance.

Bears have total control over the chart. That means lower levels are a distinct possibility.

On longer term weekly chart (not shown), gold’s price is trading well below its three weekly EMAs in a long-term bear market. MACD has crossed below its signal line in negative zone. RSI is below its 50% level. Slow stochastic has entered its oversold zone.

Silver chart pattern

Silver_Nov1615

The daily bar chart pattern of silver shows a crash below the three EMAs back into bear territory.

Silver’s price is trying to cling on to its Sep ‘15 low of 14.25 – but not for much longer. A test and breach of the 14 level seems imminent.

Daily technical indicators are inside their respective oversold zones. That may not necessarily lead to a technical bounce anytime soon.

On longer term weekly chart (not shown), silver’s price is trading well below its three weekly EMA in a long-term bear market. MACD has crossed below its signal line in negative zone. RSI is falling below its 50% level. Slow stochastic has dropped to the edge of its oversold zone.

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