Gold Price & Silver Technical Outlook: In Face-off with Resistance
Gold/Silver Price Technical Outlook
- Gold trading at both price and moving average resistance
- Silver has multiple levels/lines of resistance to overcome
Gold Price & Silver Technical Outlook: Face-off with Resistance
The price of gold is trading around the monthly high and the 200-day moving average. The monthly high is at 1834 while the 200-day is at 1820. From here we may see some backing-and-filling, and if it gold does behave in this manner it could form a consolidation pattern that leads to higher prices.
A breakout above 1834, whether it comes now or after a horizontal period of price action, is seen as a bullish development that would have the August 2020 trend-line in focus as the next level of resistance.
There is a trend-line off the late June low that is seen as helping keep the trajectory pointed upward. A break below 1789 would undermine bullish posturing and have the May 2019 trend-line in focus.
Tactically speaking, risk/reward from either side doesn’t look particularly appealing. However, with some time this should change, especially if we see a congestion pattern form that provides defined barriers on the top and bottom side to work with.
Gold Daily Chart
Silver shot up hard yesterday, but now has a set of resistance levels and lines to contend with. There are four angles of resistance in confluence; June trend-line, June lows, 200-day MA, and the underside of the November trend-line.
This resistance will need to be overcome if the current bounce is to morph into anything more than just a bounce. Tactically speaking, would-be shorts might find this an attractive spot from a risk/reward perspective to join the trend off the May highs.
Would-be longs may be best served waiting for resistance to get cleared before dialing up a bullish bias.
Silver Daily Chart
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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.