Talking Points:
- Silver and Gold Prices Bounce From Monthly Lows
- If Next Support is Invalidated, Both Trends are Set to Continue Lower
- Looking for additional trade ideas for Gold and Silver markets? Read our DailyFX Commodity Forecast
Silver & Gold prices have found short term support after both commodities have traded to new monthly lows earlier in the sessions. While this bullish bounce is significant, traders should continue to monitor short term values of support and resistance to determine if this advance is temporary, or the beginning of a broader reversal after last weeks decline.
Below, Silver prices are displayed bouncing from the S3 Camarilla pivot at a price of $16.90. If Silver remains supported above this point, traders will first look for the metal to trade back above the psychological $17.00 level and then the October 7th low at $17.07. Today’s S4 pivot for Silver is found at a price of $16.44. A move below this point would suggest that short term support has been negated, and the commodity is set to continue its developing downtrend lower.
Silver Price, 30 minute Chart with Support & Resistance
(Created Using TradingView Charts)
Gold prices, mimicking silvers bounce, are also trading off their daily lows of $1,211.41. Support below is also marked by the S3 pivot, which resides at $1,213.42. If Gold prices remain supported here, it opens the possibility that the commodity may closer higher. It should be noted that today’s open price is found at $ 1,226.20. In this bullish scenerio, Gold may attempt to test further points of resistance, including the R3 pivot at $1,238.98 and the R4 pivot found at $1,251.77. A bullish breakout through the R4 pivot should be considered significant as the market would have then eliminated most of Friday’s decline.
Gold Price, 30 minute Chart with Support & Resistance
(Created Using TradingView Charts)
--- Written by Walker, Analyst for DailyFX.com
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