Gold & Silver Technical Outlook: Path of Least Resistance Remains Down
- Gold teetering on trend-line, ~1306 seen as next level on a break
- Silver has similar trend-line under fire, ~16 targeted on break
- Both will require a good deal of work to turn bearish outlook around
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Gold trading on trend-line, ~1306 seen as next level on a break
Since the latest rejection last week in gold from the 2013 trend-line we’ve been focused on as an important long-term threshold, gold has experienced anticipated weakness. It is currently sitting on a trend-line from December, and while it doesn’t have a lot of connecting points, it’s still deemed support which if broken should lead to further weakness.
The next important level of support arrives around 1306, where we have seen several turns take place since October. Should gold hold today, then it stays in the game for a push higher, but will still have that pesky 2013 trend-line to soon contend with.
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Gold Daily Chart
Silver has similar trend-line under fire, ~16 targeted on break
Yesterday, silver tried to rally but was forcefully rejected before reaching the resistance zone in the vicinity of 16.80/17. The forceful rejection has the December trend-line under fire. A break below will bring 16.20 into play, and from there an important line of support rising up from the July spike-low.
At this juncture, between gold having long-term resistance and silver having a poor trend structure and near-term levels to contend with, it will require a good deal of work to turn the picture bullish.
Silver Daily Chart
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---Written by Paul Robinson, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.