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?
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
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?|
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07 Mar 2014 | Categories: Gold