) 200-period (bold, gray)
RSI-14 with Simple
5-period of RSI attached.
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term
Multiple Time-frame Analysis
Osama Bin Laden's apparent death and other
may have helped flows out of gold and silver. Both started the
week with a gap, sliding sharply. Silver however seems to be
falling harder. Let's take a look at these precious metals.
- Gold is sliding but the momentum, reflected by the RSI in both
4H and 1H charts, is still bullish.
- In fact the 4H RSI is still above 70. The 1H RSI is still above
50, and shows a positive
(this RSI low is lower, but the corresponding price low is
- Still, the market needs to close up the gap, and break above
to signal a bullish
is the next swing projection target for gold.
- The current low at
holds the decline from going to
area, near 61.8% retracement. If this
breaks, gold can slide towards
- On Friday, silver was heading back to retest the
pivot, attempting to break above the 50.00 barrier. However, the
market did not, and started this weak with a sharp gap down to
- As we monitor the reaction, there are 2 important pivots. The
pivot is important. A break above that suggests a retest of
and a bullish
A break above the 50 level targets
- However, if the market fails to close the gap, and instead
, it opens up the
area, then the
- It should be noted that while the 4H and 1H RSI reading in gold
are above 40, the readings in silver for both time-frames fell
way below 30. A sign that silver has more bearish momentum than
gold and may see more pressure if the market shifts demand for
Will Silver pullback from its
more significantly than Gold? We would love to hear from you.
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Fan Yang CMT
Chief Technical Strategist