What are the Next Targets for Gold and Silver?

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April 25, 2011 - What are the Next Targets for Gold and Silver?

Simple Moving Average ( SMA ) 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

Gold and Silver; Bearish Divergence; 5-Wave Rally Structure (4/18)

Gold (XAU/USD)
Short to Medium Term
- Gold did not top off, and even when there were pauses, the market maintained persistently bullish momentum.
- Now, the market reached a swing projection to 1510 .
- The next bullish target is 1585 , a larger swing projection using an Aug-Dec 2010 rally .
- If the market offers a throwback, it is likely to remain above 1500 . If it does break below 1500 , the next important support is at 1476.95 . Only a break below this suggests a more significant correction , back towards the 1450 area. However, only a break below 1430 suggests topping and a major reversal .
Gold 4/25/2011 4H and Daily Charts

Silver (XAG/USD)
Short to Medium Term
- Silver continues to surge, breaking above a 150% expansion of a swing at 47 . Right now, the 50 level provides resistance as a psychological barrier.
- However, resistance has been very weak wherever they were, and Friday's bearish 4H candle was immediately reversed at the beginning of this week.
- The RSI retains very bullish readings, and confirms bullish continuation in the daily chart.
- The market is accelerating, and the next target above 50 , is 54 , 200% expasion. However, as we reach a projected channel resistance , it won't be surprising for the market to correct itself a bit in the short-term.
- Support exists at the 47.64 pivot. Below that, 45.83 offers support . A break below 45.83 opens up the bearish scenario, given the RSI in the 4H chart breaks below 40 as well. Below that 43.50 should provide support .
Silver 4/25/2011 4H and Daily Charts


Silver is outperforming gold in 2011, why is that? We would love to hear from you. S ubscribe and become a membe r to share your views and join live discussions as well as webinars about the markets.

Fan Yang CMT
Chief Technical Strategist
FXTimes

 



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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