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Tuesday, May 9, 2017

Gold and Silver charts: bears reassert themselves

Gold chart pattern


The daily bar chart pattern of Gold has succumbed to another strong bear attack, and dropped to close below its three EMAs in bear territory.

Gold's price has bounced up after receiving support from the 1220 level - maintaining a bullish pattern of 'higher tops, higher bottoms' since rallying from its Dec '16 low.

Note that both the 20 day and 50 day EMAs have formed 'rounding top' reversal patterns, and are falling towards the 200 day EMA. Gold's sojourn into bull territory may be coming to an end.

Daily technical indicators are looking bearish. MACD and RSI are showing negative divergences by touching lower bottoms. Slow stochastic is deep inside its oversold zone, and can trigger a pullback rally towards the 200 day EMA.

Bulls need to defend the support zone between 1180 and 1200. Otherwise, bears will take complete control of the chart.

On longer term weekly chart (not shown), gold’s price has closed below its three weekly EMAs in a long-term bear market. Weekly technical indicators are looking bearish and showing downward momentum.

Silver chart pattern


The daily bar chart pattern of Silver faced relentless selling by bears - dropping below its three EMAs and its Mar '17 low into bear territory.

The imminent 'death cross' of the 50 day EMA below the 200 day EMA will technically confirm a return to a bear market.

Daily technical indicators are looking bearish and oversold. A pullback rally towards 16.75 is a possibility. Bears may  use any rally to sell again.

On longer term weekly chart (not shown), silver’s price closed below its three weekly EMAs in a long-term bear marketWeekly technical indicators are looking bearish and showing downward momentum.

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