Gold & Silver Technical Outlook: Prices Winding Up for a Move
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Gold/silver technical highlights:
- Gold lacks clarity, but generally price action is weak below 2013 trend-line
- Silver remains weaker than gold, chart coiling up into a wedge
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Gold lacks clarity, but generally price action is weak below 2013 trend-line
Gold remains capped on the top-side by the 2013 trend-line, and as long as it stays beneath on a weekly closing basis a neutral to bearish bias will continue to be warranted. As it stands right now, we have three lower highs in place since the January top with horizontal price support down near 1300.
A break through the trend-line running up from December and through 1300 will bring the 200-day at 1289 into focus, and with aggressive selling the December 2016 trend-line down near 1275. To turn the picture bullish, a good deal of work will be needed, starting with a weekly capture of the 2013 trend-line, until then rallies are likely to fail.
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Gold Daily Chart (weakening price action)
Silver remains weaker than gold, chart coiling up into a wedge
Silver is treading water sideways, with price action taking on the shape of a symmetrical wedge. Given the overall weakness and fact it can’t sustain a move above 16.80/17 suggests it could soon break to the downside. The first level to watch comes in at 16.17, followed by a trend-line from the July spike-low, in the vicinity of 16. If selling becomes aggressive, the December low could come into play at 15.62.
Silver Daily Chart (wedge below resistance)
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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.