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Monday, November 17, 2014

Gold and Silver: Have Thanksgiving Rallies Started?

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.   


  
Learn from the Generals of the Markets: Market Generals

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