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? |
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article is written according to the author’s views and by no means
indicates investment purpose. Opinions
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28 Jan 2014 | Categories: Gold
