GOLD
(XAUUSD)
Long-term
bias: Bearish
In 2015, Gold
topped at 1307.35 and later reached a low of 1046.21. Gold was engaged in
perpetual and persistent downtrend, trapping bulls with short-term bullish
movements. It is completely irrational to open long trades in the market,
because the bears have really made their presence felt for a long time. Years
2013, 2014 and 2015 were all strongly bearish, which explains one of the
reasons why the Thanksgiving effects did not take place in those 3 years. Since
this is a market that currently favors sellers, it would be rational to seek
short trades only (using upward bounces opportunities to sell short, especially
when bearish candles form following such upward bounces).
SILVER
(XAGUSD)
Long-term bias: Bearish
Just like its
Gold counterpart, Silver has been in a persistent downtrend since the year 2013.
In this kind of market, the best trading approach is to ignore bullish signals
and capitalize on bearish signals. Bullish signals could also be taken as
chances to enter short at better prices, which offer lower risk as long as the long-term
bias remains bearish. Last year, price reached a high of 18.4500 and a low of
13.6100 – a low that could be breached to the downside this year. In this
market, it is recommended that rallies should be viewed with suspicion until
there is a “Golden Cross,” which is a situation in which price closes above the
EMA 200 on the daily chart, trending upwards. This is when it can be safely
said that the bearish trend is over.
Source: www.tallinex.com
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