Gold and Silver Technical Update
March 16, 2011 - Gold and Silver in a Pullback to Test Bearish
Simple Moving Average(
) 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
Gold and Silver in Pullback to Test Bearish
- Gold was seen yesterday in a wedge. It was noted that a
break below it might not mean completion of the correction, or
pullback that was occurring.
- Indeed we see another rally attempt today, which could be the
second swing to complete an ABC correction.
- The bearish outlook remains a projection towards
area. This is a swing projection seen in the 4H chart (from
is also 161.8% projection seen in the daily chart and
is 61.8% retracement. This is a cluster of support levels and
should provide support to a bearish attempt.
- The bearish scenario should be confirmed if the market closes
in the 4H chart.
- Silver is in a similar setup as Gold as the market consolidates
after a corrective decline.
is acting as resistance. If it breaks, the bearish scenario might
have trouble. The outlook would turn more sideways with a bearish
bias, instead of a bearish swing.
- A close by a 4H candle below
suggests bearish continuation in the short-term. A swing
projection targets the
- There are some support here, but major support is near the
area. This is also near 50% retracement. Above
, we also have a pivot at 31.75. We can expect support to form in
this area between
Will Gold and Silver continue their corrective
declines? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist