Gold & Silver: Retraced but with a view

Gold (COMEX:GCJ14)

Our last commentary, we warned a make or break on gold as $1,400 is within sight. Failure to move higher despite the escalation in Crimea has done little to promote safe haven buying. The initial news have long left the bull camp, rather the market was washed with false expectation that prices could continue to move higher to test the magic number. The bears disagree and profit taking as we approach the end of the quarter seems far more viable. Looking closer at the below weekly chart, the downtrend line still prevail and another round down the south coast on the chart seems possible.

Resistance: $1,355, $1,367.50, $1,377 Support: $1,286, $1,293, $1308 

Traders Notes: Only buy on the break of $ 1,366 but with a stop at $ 1356. If not buy on support at $ 1,271 stop at $1,251.

Short Term (1 – 3 weeks)

Medium Term (1 – 3 months)

Long Term (6- 12 months)

Bearish $1,278

Bullish - $1,387

Target $1,550

 

Silver (COMEX:GCJ14)

Our previous attempt to short the white metal failed as we went in too early. However, our last commentary was rather on the spot as Silver did take a pause of uncertainty. The bears drove the price lower despite a push in gold, usually a contrary trade that signal distortion. Gold and Silver ratio gave another hint that gold prices face impending pullback as the US dollars is poised to retrace higher after several weeks of weakness. The break lower was justified and we stick to our view that prices should retraced before advancing higher. Main concern only lies on the long term downtrend line that will continue to build pressure.

 

Resistance: $21.85, $22.20, $22.45 Support: $19.50, $20.77, $21.05

Traders Notes: Should the price stabilise and found support at $19.50, buy with a stop loss of $0.30 to target the downtrend line at $21.40.

 

Short Term (1 – 3 weeks)

Medium Term (1 – 3 months)

Long Term (6 – 12 months)

Flat

Flat

Bullish – a potential bull run?

 

Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome