Gold & Silver: Joke Aside, Precious Metal Complex Holding Well
Enjoy the above illustrations as it depicts a clear picture on the current economic situation.
The better than expected economic numbers were disappointing despite the optimistic view from market analysts. Politicians continue to praise the market as they consider several options of getting “out of the woods” scenario. The Bank of England suggested possible hike in interest rate early next year as they see continues growth in employment. It also implies the need to rein in spending power among consumers. Federal Reserve could look to slow down in tapering as the economy situation elsewhere are not picking up in pace.
support now lies at $ 1276 area which could determine the buying
power of the new investors. However, we expect pullback in the next
few weeks as traders look to book their profit after the indicator
reached an overbought level (watching the plateauing stochastic
line). We continue to see the risk of gold prices pulling back to
find a decent support before testing higher. The overbought indicator
continue to serve as a warning signal that certain profit taking will
take place after a run-up from 1235 area.
|Resistance: $ 1328.46, $ 1347.50, $ 1366 Support: $ 1276, $ 1295, $ 1300|
Traders Notes: Sell at $ 1318 (stop at $ 1328) target $ 1298 (keep this light) stop hit.
|Short Term (1 - 3 weeks)||Medium Term (1 - 3 months)||Long Term (6- 12 months)|
|Bearish $ 1278||Bullish - $ 1366||Target $ 1400|
Silver Technical Outlook
We admit that we
were short of an optimistic expectation to see higher prices in
silver after months of short rallies that failed to materialise. With
such a strong break higher to end the week, we expect a small
pullback to retest support before we see fresh demand from investors
to push prices higher. This week chart shows a doji star as the bulls
and bears fight it out for position. We still see a pullback on
silver prices to test support before it can materialise higher. The
short trade was short-lived but we will look to enter a short again.
|Resistance: $ 21.50, $ 21.80, $ 22.20 Support: $ 19.50, $ 20.36, $ 20.75|
Traders Notes: Sell at $ 21.35 (stop at $ 21.55) target $ 20.95 area - stop hit. Flat for now.
|Short Term (1 - 3 weeks)||Medium Term (1 - 3 months)||Long Term (6 - 12 months)|
|Flat||Flat||Bullish - a potential bull run?|
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24 Feb 2014