Adsense

Monday, July 28, 2014

Monthly Technical Reviews on Gold and Silver (August 2014)

GOLD (XAUUSD)
Dominant Bias: Bearish
The recent bias on Gold is bearish, but the bulls have been making serious effort to push the price higher. It is possible that the price could go downwards, but this should be short-lived, for the price would meet some obstruction at the support levels of 1287.00 and 1297.00. In fact, it is highly possible for the price to go upwards determinedly, starting around the middle of August 2014. When this happens, the upward journey could become strong enough to override the current bearish bias, as the expected bullish bias would hold out very long when it is established. The bulls can target the resistance levels of 1330.00 and 1340.00 in the near term.  


SILVER (XAGUSD)
Dominant Bias: Bearish  
The fate of Silver would be similar to that of Gold in the month of August 2014. This is possible because Gold and Silver are highly correlated (positively), and therefore, a strong upward movement in Gold would also cause Silver to move upwards. This bullish run has a very high probability of starting sometime in the month of August (especially around the middle of the month). The expected bullish run could last for a few months after it finally happens. Any pullbacks along the way would be challenged at the demand levels of 20.2600 and 20.1600. The price could go on towards the supply levels at 21.3500 and 21.5500 consecutively.  



Learn from the Generals of the Markets: Market Generals

No comments:

Post a Comment