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Gold & Silver; Gold to Gallop higher in the year of Horse?

It is hardly ironic to have a roaring equity market on the back of what some would consider as a poor economic data. If we are to compare the current economic indicator with those of 2002 to 2007 then the equity market will need to readjust with severe retracement. We have been cautious on the rally as 2013 ended, as we deem those moment as euphoria buying. The general public (Tim, Dick and Harry) are all buying with a belief that they are expert in the equity trading industry - that anyone could have made a tidy sum. One real problem they have is that the fundamental and reality of the equity market is so distorted that they just do not care. A cold reminder that greed is the root of all evil and yet we are repeating the exact same clip over and over again - only this time the rich do get richer.

Gold Technical Outlook

Weekly Chart
Our commentary on 20th January made an important point that a close above $ 1253 will give gold a bullish edge to target $ 1276 (it hit $ 1276.58) before retracing back to find support at $ 1255 (as of the time of writing). As long as the demand is there, we could see a potential push to $ 1321 area if it managed to stay above $ 1228 in the next few days. Otherwise, the selling momentum will continue as gold trade in a downtrend line. As China breaks from holiday, gold will be vulnerable to selling in the next few weeks. It remain possible to reach as low as $ 1100 or beyond that at $ 1040. The weekly downtrend remains solid, with a rebound as an opportunity to sell further.

Resistance: $ 1277, $ 1296, $ 1324 Support: $ 1227, $ 1200, $ 1180

Traders Notes: Flat for now. Buy on the break of $ 1301 target $ 1324 (stop at $ 1291).

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 $ 21.80, followed by $ 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?

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. 

28 Jan 2014 | Categories: Gold

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