Monday, February 2, 2015

Monthly Technical Reviews on Gold and Silver (February 2015)

Dominant Bias: Bullish
Gold went upwards last month, topping at 1307.35. After this, price began to trend lower around the end of that month, resulting in a serious threat to the existing bullish bias.  There is a need for Gold to break the last month high to the upside, while trading further northwards and possibly reaching another resistance level at 1390.00. Failure to do this can signal a beginning of a smooth bearish movement. A break below the support level at 1250.00 would mean the end of the bullish bias, especially when price closes below that level, trending further lower.

Dominant Bias: Bearish  
The bulls pushed Silver upwards in January 2015, but the bears overpowered them before the end of that month, pushing the market lower. The action of the bears was strong enough to render the recent bullish outlook useless, and it is not currently logical to open long trades here unless price crosses the supply level at 17.6000 to the upside, closing above that level. Without the aforementioned condition being met, Silver may challenge the demand level at 16.7100, and should the bulls fail to defend that demand level, price would go further south from there. 


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