Gold & Silver; Retraced but with a view
Unfortunately
there is some truth on the above excerpt given the vast differences
and divergence to include the fact that time has changed. However,
capitalism had made those intelligent a lot richer compared to the
time of Mr Tesla as depicted. On the contrary, the rich do get richer
while the poor or oppressed remain where they are until such time
changed. The economy and capitalism as a whole promote innovation,
risk taking as well as aspiration. The truth is that everybody is
trying to live a life that they do not belong to and certain
aspiration is created within a cycle of debt. 2008 financial crash
seems distant away but painful memories are still there as the world
leaders and economists look at unconventional ways to mend the
irrecoverable. Short-termism is a culture ingrained within the
financial industry, followed then by slack government controls and it
is in our human nature that nothing is ever good enough.
Gold
Technical Outlook
Weekly
Chart
Our
last commentary, we warned a make or break on gold as $ 1400 is
within sight. Failure to move higher despite the escalation in Crimea
has done little to promote safe haven buying. The initial news have
long left the bull camp, rather the market was washed with false
expectation that prices could continue to move higher to test the
magic number. The bears disagree and profit taking as we approach the
end of the quarter seems far more viable. Looking closer at the below
weekly chart, the downtrend line still prevail and another round down
the south coast on the chart seems possible.
| Resistance: $ 1355, $ 1367.50, $ 1377 Support: $ 1286, $ 1293, $ 1308 |
Traders Notes:
Only buy on the break of $ 1366 but with a stop at $ 1356. If not
buy on support at $ 1271 stop at $ 1251.
| Short Term (1 - 3 weeks) | Medium Term (1 - 3 months) | Long Term (6- 12 months) |
| Bearish $ 1278 | Bullish - $ 1387 | Target $ 1550 |
Silver Technical Outlook
Weekly Chart
Our previous
attempt to short the white metal failed as we went in too early.
However, our last commentary was rather on the spot as Silver did
take a pause of uncertainty. The bears drove the price lower despite
a push in gold, usually a contrary trade that signal distortion. Gold
and Silver ratio gave another hint that gold prices face impending
pullback as the US dollars is poised to retrace higher after several
weeks of weakness. The break lower was justified and we stick to our
view that prices should retraced before advancing higher. Main
concern only lies on the long term downtrend line that will continue
to build pressure.
| Resistance: $ 21.85, $ 22.20, $ 22.45 Support: $ 19.50, $ 20.77, $ 21.05 |
Traders Notes: Should the price stabilise and found support at $
19.50, buy with a stop loss of $ 0.30 to target the downtrend line at
$ 21.40.
| 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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25 Mar 2014 | Categories: Gold
