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Monday, March 2, 2015

Monthly Technical Reviews on Gold and Silver (March 2015)

GOLD (XAUUSD)
Dominant Bias: Bearish
Gold was bearish for the most part of the last month and there is a possibility that it would continue to be bearish this month. There has been a series of higher lows and lower lows in the market and the current higher low may be another opportunity to sell short when things are slightly bullish and in the context of a bearish trend. The resistance levels at 1255.00 and 1275.00 should do a good job in defending the existing bias, as price may find it difficult to go upwards through them. On the other hand, price may test the support level around 1190.24 – which was the low of the last month. It may even breach that support level to the downside, while going further south.


SILVER (XAGUSD)
Dominant Bias: Bearish 
Silver is not currently a strong market because the bears have already gained dominance.  The recent attempts by the bulls to push price upwards have been foiled by the bears, and therefore, the market was bearish in the month of February 2015. It is possible that this bearish trend would continue this month, taking price towards the demand levels at 16.0000 (16.0450 was the low of the last month). While Silver has moved higher since it touched the low of the last month, this higher movement could be a trap to the unwary bulls, for price could drop further from here. Only a movement above the supply level at 17.5000 could invalidate this expectation.





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