GOLD
(XAUUSD)
Dominant
Bias: Bearish
The long-term
bias on Gold is bearish, but the medium-term bias is bullish. Even the
medium-term bullish bias has been put in a precarious condition, because price
has been trending downwards this week. Any movement below the support level at 1187.00
would make it illogical to seek long trades, while a movement below the support
level at 1185.00 would result in further strengthening of the selling pressure
in the market. It is now clear that this precious metal can no longer trend
significantly upwards this year, and as a result of this, further southward movement
might be anticipated, while rallies would be seen as good opportunities to sell
short. The bearish outlook may hold until January 2015 – a period when Gold could
begin to rally seriously.
SILVER (XAGUSD)
Dominant Bias: Bearish
The selling
pressure on Silver is even stronger than the selling pressure on Gold. Price
trended upward last week, and then moved in a tight consolidation before it
closed. This week, price has been dropping so far, having gone downwards by
over 900 pips on Monday. The market is currently trading below the supply level
at 16.5000, and a movement below the demand level at 15.5000 would signify increased
seriousness of the selling pressure. Possible rallies can enable traders to
sell the rallies, though the bulls may come back with a greater force in
January 2015.
Source: www.tallinex.com
Learn from the Generals of the
Markets: Market Generals
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