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Monday, April 28, 2014

Monthly Technical Reviews on Gold and Silver (May 2014)

Here’s the current outlook on Gold and Silver.

GOLD (XAUUSD)
Dominant Bias: Bearish
There is not yet any Bullish Confirmation Pattern in this market, unless the price goes above the resistance level at 1300.00.  As long as the price stays below the resistance levels, the bias remains bearish. Last week, there were large downswings and upswings in the market. The price reached a new weekly low at 1268.34, and later a new weekly high at 1306.26. The situation in the market now requires some tact in order to generate satisfactory results. One option is this: we would be looking at some levels that could be tested on the upside and the downside. After that, we might be able to take a position.

SILVER (XAGUSD)
Dominant Bias: Bearish
The situation on Silver is nearly similar to that of Gold.  The price dropped like a stone last week but recovered quickly. The demand level at 18.9050 was tested before the price shot skywards, reaching the supply level at 19.8700. That was a movement of over 950 points within the same day! After that, there was a sideways volatility, and it seems the bulls are no longer willing to push the price further upwards. The present correction still helps to show that the bearish outlook on the market is still logical. In the month of May 2014, the price may go more bearish. Nevertheless, it may not reach the recent demand level at 18.9050.


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