Gold and Silver Offer Bearish Negative Reversal Signals


Simple Moving Average( SMA ) 50-period (red), 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

Previous Post on gold and silver (1/26): Gold and Silver Dig at Support Levels Further

Gold (XAU/USD)
Gold 4H Chart 1/27/2011
- The bearish scenario did not pan out as we anticipated yesterday, but the rally yesterday failed to even test the 1355 level, a break above which would suggest a possible end to the current decline.
- Instead the market failed to break even test the high from the previous consolidation zone. The 4H chart shows the RSI making a new high, but price failing to do so.
- This suggests another swing down, with 1318 target in sight. Remember 1315 is our anticipated level of support, below which, we might see an accelerated decline. A failure to reach our target could reflect exhaustion, in which case you should be be on a lookout for gold bulls to attempt a rebound from this area towards the 1380, but again with 1355 as an important resistance to test first area.

Silver (XAG/USD)
Silver 4H Chart 1/27/2011
- Silver also shows a negative reversal signal, pointing towards 26.50 , below which we can see 25.00 as target.
- The 28.00 is the threshold for a rally within the bearish context.
- A failure to reach 26.50 would reflect exhaustion, and a break above 28.00 would then open up a bullish scenario towards the 29.00 area.

Will gold and silver bulls take back control? We would love to hear what you think.
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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 The NASDAQ, Inc.

This article appears in: Investing , Commodities

Referenced Stocks: SMA

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