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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.

Gold Technical Outlook
Weekly Chart

Key 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
Weekly Chart

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?

This article is written according to the author’s views and by no means indicates investment purpose. Opinions expressed at Sharps Pixley Ltd are those of the individual authors and do not necessarily represent the opinion of Sharps Pixley Ltd or its management, shareholders, affiliates and subsidiaries. Sharps Pixley Ltd has not verified the accuracy of any claim or statement made by any independent writer and is reserved as their own and Sharps Pixley Ltd is not accountable for their input. Any opinions, research, analysis, prices or other information contained on this website, by Sharps Pixley Ltd, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. Sharps Pixley Ltd will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The data contained on this website is not necessarily real-time or accurate. 

24 Feb 2014

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