GOLD
(XAUUSD)
Dominant
Bias: Bearish
On Friday,
November 14, 2014, Gold bounced upwards. That was a break from the equilibrium
zone that was formed last week. The upwards bounce was strong enough to
threaten the existing bearish bias. In the US, Thanksgiving Day is on November
27, 2014. As usual, it would be the 4th Thursday of the month of
November. What is unique about this period is that Gold tends to rally around
the period – with a high degree of accuracy. If you check the historical data
of Gold around the Thanksgiving Day, you would see that Gold tended to rise in
the middle of November every year. While this is not correct for all the past
12 years, it is correct for most of those years. Interested ones may look
forward to going long on Gold today or tomorrow, setting a stop of 200 points
below the entry price, with a target of 600 points. Usually, the rally has a
tendency to start about several trading days before Thanksgiving Day.
SILVER
(XAGUSD)
Dominant Bias: Bearish
The Thanksgiving
rally may also happen on Silver (though Gold is the main focus), for it often
goes in the same direction with Gold. Last week, the price moved sideways,
forming a base in that week. From that base, the price broke upwards in
conjunction with Gold. That upward break was significant enough to put the
existing bias in jeopardy and the current weak pullback may offer a good
opportunity to go long, as a stop of 200 points and a target of 600 pips are
set.
Source: www.tallinex.com
Learn from the Generals of the Markets: Market Generals
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