Gold Extends Consolidation Giving Silver Another Chance

Gold and silver exchange leading roles in the market quite often, especially on the short-term charts. Last time I wrote about it silver saved gold from collapse at the start of this month. The white metal unexpectedly bounced off the earlier low reversing the drop of the yellow metal.

This time gold took the lead as its failure to break below the Bear Flag let silver lick its wounds and return above the $14 handle.

Both metals are still trapped in the middle of the range set by the earlier heavy drop, which first occurred in gold and then it was repeated in the silver market. In this post, I have focused on the local structure as the bigger picture remains unchanged.

Chart 1. Gold Daily: 3rd Leg Up Is Uncommon But Possible

Chart courtesy of

The top metal couldn’t break below the trendline support of a Bear Flag (orange) and then quickly restored most of its losses coming back above $1200. It is interesting that the forecasted drop unfolded quite differently in each metal. Silver tagged the earlier trough, but gold failed even to breach the vertically sloped trendline. It looks like strong demand appeared right at the round number of the gold price in the $1200 area. Continue reading "Gold Extends Consolidation Giving Silver Another Chance"

Gold & Silver: Falling Knives

Silver has failed to complete the second leg up as it couldn’t break above the August top of $15. It is interesting that this misbehavior of the white metal didn’t surprise you as the majority of you had bet last week that silver would fail and drop below $14.2. It’s impressive how accurate your forecast was!

In this post, I would like to update downside targets as we should be prepared for the resumption of the drop in metals after pullbacks have been finished.

Chart 1. Gold Weekly: Bear Flag Targets Bottom

falling knives
Chart courtesy of

Last week I reminded you of the big range of trade, which requires the retest of the downside of the range to complete the setup. Continue reading "Gold & Silver: Falling Knives"

Silver Slows Saving Gold From Collapse

Chart 1. Gold Daily: Former Support Retested, Another Spike Is Possible

Chart courtesy of

Gold has finally reached both the AB/CD target and the former support area of $1237 (gray dashed line) as it was forecasted last month in this chart. The metal hit the maximum of $1243 on the 26th of October and then dropped like a rock as was also anticipated after the completion of a pullback. Last Wednesday the price established a low of $1212 losing $31 (-2.5%) from the top. But at the end of last week, gold restored almost all of its losses, closing just below the former support at $1233.
Continue reading "Silver Slows Saving Gold From Collapse"

Gold & Silver: Fly or Die

The precious metals are busy finishing the anticipated pullback to the former support, which is almost within our grasp on the short-term charts. So, let it go and in the meantime we can look into the bigger charts with higher time frames to update the outlook beyond the short-term horizon.

Chart 1. Gold Monthly: 1122/1375

Gold Shines
Chart courtesy of

The monthly gold chart above answers some critical questions. The first one, why gold reversed ahead of $1000? The answer is the red horizontal line, which was set at the 2008 top and acted as strong support and breakdown of it would unleash severe volatility into the market as the next level of serious technical support is located in the $700 area (2006 top/2008 bottom). Continue reading "Gold & Silver: Fly or Die"

Now Is Time To Buy Gold, But Quit Silver

Aibek Burabayev - Contributor - Metals

Dear Readers,

Last week I recommended you to be patient and wait until Gold finishes its pullback. The most important thing was to see if the neckline of an Inverse Head And Shoulders pattern and Symmetrical Triangle’s upside (highlighted in red) would stay safe. As you can see, Wednesday and Thursday candles couldn’t break below the support and this ideal pullback was amazingly precise. Moreover, Thursday’s candle appeared to be an Inverted Hammer. An Inverted Hammer is a reverse candle shaped on the troughs of a downtrend when the open and low are at the same level. The market reversed up on Friday confirming what the candle had suggested. On top of this, RSI also kept its support intact adding to the reversal behavior of the price. And the final touch is from possible uptrend development (highlighted in dashed green parallel lines) which now has three consequent bottoms adding to the power of the channel. So, we have an ideal pullback of the price. This is a healthy sign for the bulls, as its easier now to gain enough momentum from RSI’s low to soar back above $1300. Now, my patient friends, it is safe to buy gold above the Inverted Hammer’s high at $1233, with a target at $1300 (just below recent peak - buy level and target are highlighted in green arrows). And as always ,please don’t forget to put your stop below the neckline at $1212 ($3 below support highlighted in red). Risk is 1.7% ($21), reward is 5.4% ($67). Continue reading "Now Is Time To Buy Gold, But Quit Silver"