Gold & Silver Price Charts – Test of Trend Support Nearing
Gold/Silver Technical Highlights:
- Test of November trend-line in gold approaching
- Silver has a couple of degrees of support it may soon test
See what drivers DailyFX analysts expect to move Gold in the coming weeks in the Q1 Gold Forecast.
Test of November trend-line in gold approaching
The reversal in gold last week has quickly come to a grinding halt, with the past few days sporting very little activity. That looks set to change perhaps as soon as today, and on that may come a testing of the important November trend-line/lower parallel.
After getting rejected from around long-term resistance, holding the Nov trend-line will be important as a break could lead to a pick up in selling. The trend-line has numerous inflection points also adding weight to its importance. One of these times it may not hold, but until it doesn’t it is viewed as support.
A move higher doesn’t leave a lot of room for a good long trade with resistance not far ahead. One scenario that may offer up some ‘juice’, is for a bounce off the trend-line then lower-high and break of the trend-line, furthering along last week’s key reversal. For now, though, in ‘wait-and-see’ mode.
Check out the IG Client Sentiment page to see how changes in trader positioning can help signal the next price move in gold and other major markets.
Gold Daily Chart (Watch the Nov t-line)
Gold Weekly Chart (Reversal around big long-term resistance)
Silver has a couple of degrees of support it may soon test
Silver’s outlook is even worse on the upside, due to it not only lagging gold but also have a good deal of resistance by way of several trend-lines: 2003, July 2016, and April 2017 t-lines all run in the same vicinity. Keeping it supported trend-lines from December and last month, but both aren’t off the highest quality given the number of touch points. A break of these, though, will further validate resistance, and if gold fails to hold the November trend-line – selling could pick up quickly for this long-time laggard.
Silver Daily Chart (Lots of resistance)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.