Gold and Silver Weekly Update – 12.17.2010

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Tools:
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)

Gold (XAU/USD)
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  • Daily 4H : Gold may be heading south towards  1350 . A break below that targets 1330 . We also see a rising support in the daily, that might be met above 1350 .
  • A break above 1382  should put the bearish scenario aside, and a break above 1396 should start the discussion of a bullish scenario.
  • However, the market is ranging, so it is more likely that it is moving from pivot to pivot, without following a clear trend.
  • In the 4H chart, the latest rally failed to close above 61.8% of the previous leg down, keeping the sentiment bearish in the near-term.
  • But, if the market stays within a channel, a rally can sees resistance at 1408 , then the  1430  all-time high recently established.

Silver (XAG/USD)
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  • Daily 4H : Silver is a tad stronger, the RSI is staying above the 40 level in the 4H chart. The Gold 4H RSI dipped below 40. Gold showed a lower low, but Silver kept it above it previous low.

  • In fact silver looks to be respecting a rising support, and a break above 29.30  suggests bullish continuation. RSI would confirm with a surge above 60.

  • 29.90 , then 30.70  are the next targets for a rally in silver. However, a range between 29.90  and  28 could be developing.

  • The bearish attempt on the 7th, has already be reversed as the market retraced more than 61.8% on the 14th. Therefore, the bias is bullish still, and a projection goes to  30.30 , given that it breaks above 29.30 and the 29.90 clip.

Are the previous metals still a good play? We would love to hear from you
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Fan Yang CMT
Chief Technical Strategist
FXTimes

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.



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



This article appears in: Investing , Commodities

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