Saturday, September 27, 2014

Monthly Technical Reviews on Gold and Silver (October 2014)

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.

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.

Learn from the Generals of the Markets: Market Generals

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