Gold and Silver Continuing Major Corrections


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Simple Moving Average ( SMA ) 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis

Gold Completes a 5-Wave Triangle (5/16)
Silver Maintains Bearish Momentum ( 5/13)

Gold (XAU/USD)
Gold 5/17/2011 Daily and 4H Charts
Short-Term to Medium-Term
- The previous count for the triangle had to be adjusted now that the market is showing us a break to the downside.
- The 5-wave structure reflects a B wave in a projected ABC correction , where we are now starting that C wave.
- A swing projection targets 1417 , in a support cluster zone.
- Even above that near 1445 , there is an important support . If the markt breaks the current low at 1462 support should be found near 1445 .Only a break above 1526.50 opens up the ranging to bullish scenario. Right now, the market is ranging to bearish, with prospect of making it a major bearish correction in the short to medium term. The long run in gold is still bullish.

Silver (XAG/USD)
Silver 5/17/2011 Daily and 4H Charts
- Silver's decline has been more pronounced, and its consolidation has been minor as far as amount of retracement before bearish continuation . The market is now pushing lower, and our first support , which is an important one is the 31.00-31.00 area.
- A couple of swing projections shown in the 4H chart targets 29.40 and 23 . We also see a support pivot at the 2011 low,  26.35 .
- If the market pushes above 39.50 , the zig zag scenario turns more into a flat scenario, but we would still be in consolidation . Only a very strong and healthy silver market can push back to 49.50 and break it. Instead, silver is more likely to be in a significant bearish correction .
- The long-term outlook is still bullish, but maybe flatter than the prospect of gold's bullish resumption.

Has gold completed its correction and is it ready for bullish continuation ? S ubscribe and become a membe r to share your views and join live discussions as well as webinars about the markets.

Fan Yang CMT
Chief Technical Strategist


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Commodities

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