Gold and Silver Update 1/24 – Bears March On

By Fan Yang,

Shutterstock photo

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 Gold and Silver Update: Will the Bulls Take Back Control? (1/21)

Gold (XAU/USD)
Gold 1H Chart 1/24/2011

- The retracement of 38.2% seen in the 1H gold chart was sharp, but there is topping.
- This did not break above the 1355 level, which should act as resistance.
- The RSI remained below 60 after a minor violation.
- The market still looks bearish towards 1330 area. A break below 1329.50 then looks at 1315 .
- If the market decides to rally, and DOES break above 1355 , we have a kilroy or reverse head and shoulder signal, targeting 1363 (61.8%) area.

Silver (XAG/USD)
Silver 1H Chart 1/24/2011
- Silver respected the 28.00 level as anticipated, held under 38.2%.
- A decline that breaks below the previous low, and fails to break back above 27.50 area, should be heading south to test the 26.50 level.
- A break below that opens up the 25.00 target.

Will the gold and silver bulls take back control this week? 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 Nasdaq, Inc.

This article appears in: Investing Commodities
Referenced Stocks: SMA

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