Gold & Silver; Going from Strength to Strength
Everything
seems to have gone back to normal and some even said better times are
here already. Others questioned if it is only a minority few that
benefited from the current buoyant stimulated economic recovery. Most
seems to struggle with pay day loan (debts), month to month credit
card bill, ever increasing cost of living and depressing wage level.
Elected politicians and the media prophesy a positive picture full of
hope and real recovery. We questioned such existence no matter how
hard we try to stay positive.
In every financial crash, there is a time gap where the system breaks into a vacuum where depression sets in to readjust the supply and demand. Recent economic studies claimed that it may not be true now given that the economic situation is different. They argued that depression is replaced by a blip in the system given the amount of freshly printed money in the economy. Basically, we are in the midst of injected-stimulant depression. But because we are all high with new printed money, it made the whole depression less painful - like morphine.
Simply ask one addict what happened once the morphine runs out?
Gold Technical Outlook
Weekly Chart
A
flow of good economic news streamed and buoyed investors with great
confidence to shift their investment to stock market. This includes
an optimist fed official’s remarked that stocks are not
“overvalued” which is laughable. Correction and further selling
pressure continue into 2014, with no respite as large volume selling
dominates the market place. We continue to see lower gold prices,
possible reaching as low as $ 1100 or beyond that at $ 1040. The
weekly downtrend remains solid, with a rebound as an opportunity to
sell further.
| Resistance: $ 1256, $ 1280, $ 1290 Support: $ 1200, $ 1190, $ 1180 |
Traders Notes:
Flat for now. Will place a short if price break below $ 1180
targeting $ 1165, $ 1155 and $ 1145 area. Buy on the break of $ 1256
target $ 1323 area.
| Short Term (1 - 3 weeks) | Medium Term (1 - 3 months) | Long Term (6- 12 months) |
| Bearish $ 1110 | Bullish - $ 1408 | Target $ 1500 / $ 1600 |
Silver Technical Outlook
Weekly Chart
Downtrend channel line remains intact and will continue to drive the
prices lower for now. Only a break above $ 21.05 can spark further
buying to retest resistance at $ 20.80, followed by $ 21.40 and $
22.20.
| Resistance: $ 21.05, $ 21.40, $ 21.80 Support: $ 19.85, $19.35, $ 18.85 |
Traders Notes:
Flat
| 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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08 Jan 2014
