GOLD
(XAUUSD)
Dominant
Bias: Bearish
This market
became bearish in July 2014, and since then the price has dived by over 1300
points. The bias is still very bearish – characterized by great volatility in
the market. This shows that there is a serious struggle between the bull and
the bear. The price has tested the support level at 1206.00, and with more
weakness in the market, the price may breach the support level to the downside,
going towards another support levels at 1205.00 and 1204.00 respectively. The
bull – though currently fighting a losing battle – may eventually succeed in
pushing the price upwards towards the resistance levels at 1235.00. Should the
price rally above that resistance level, it may be a serious threat to the
bearish outlook.
SILVER
(XAGUSD)
Dominant Bias: Bearish
Since July 2014,
Silver has dropped by over 4000 points, going downwards with magnanimous alacrity
and reaching as low as the demand zone at 17.3000. This sustained trending movement
shows the wonderful advantage of running one’s winner and truncating one’s
negativity. It also shows that in a strong trend like this, short-term
counter-trend movements invariably proffer new opportunities to join the trend
at bargain prices. Further movement to the south may cause the aforementioned demand
zone to be breached to the downside, allowing the bear to target another demand
zone at 17.0000. However, it ought to be repeated that there is a high possibility
of a strong rally around the months of November/December 2014.
Source: www.tallinex.com
Learn from the Generals of the Markets: Market Generals
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