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Gold & Silver; Gold Biding Its Time

Momentarily, the world attention was diverted to the less publicised part of Ukraine. Fear and uncertainties of war draw first blood in the stock markets followed then by safe haven buying which did not last long. The world superpower stamped their foot down hard to make sure anarchy is not allowed. However, market opportunists may have benefited from the one off event as long as they received sufficient time to place and book their profit. World leaders came in with strong diplomatic view and restrained more blood spill. The build-up was well orchestrated as Russian troops moved in - clearing the advanced made in stock markets which then revitalise after the deadline for a potential war turned into misinformed market. a hyped situation brings about volumes with a potential culprit dumping and then buying it cheaply again. You get the big picture there don’t you?

Gold Technical Outlook
Weekly Chart

Pullback to $ 1308.87 above the daily 200 DMA seems to suggest the bulls would like to continue advancing higher or stay a little longer. The overbought indicator remains to flash as a warning sign of a deeper pullback to retest previous support. Stochastic has criss-crossed with past events of safe haven buying and negative economic data that weakened the dollar. Meanwhile, the bulls will need to see a pick-up in demand and volume again in order to trade comfortably above $ 1300. Bollinger band seems to tighten up and suggest a cap on this advance while the lower band play catch up. We cannot rule out a retest of $ 1300 or $ 1287 area.

Resistance: $ 1355, $ 1367.50, $ 1377 Support: $ 1286, $ 1293, $ 1308

Traders Notes: Short at $ 1346 and $ 1336 target $ 1325 (keep light) with a stop at $ 1357

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 continue to see silver prices trading at a tight range and with a pullback due as we approach the long term downtrend line. We expect a possible push before a deeper pullback to retest support. This week chart shows another 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: $ 21.85, $ 22.20, $ 22.45 Support: $ 19.50, $ 20.77, $ 21.05

Traders Notes: Advance capped by long term downtrend line.

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. 

07 Mar 2014 | Categories: Gold

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