Technical analysis of Gold for December 01, 2014 Technical outlook and chart setups: Gold has dropped below $1,170.00 levels, taking us out on the remaining long positions. Also please note that the counter trend support line has been broken as well and the metal has made intraday lows at $1,142.00 levels as seen here. Immediate support is seen at $1,130.00 and lower while resistance is fixed at $1,208.00 (interim), followed by $1,235.00, $1,255.00 and higher respectively. As seen here, the metal is bouncing off the fibonacci 0.786 support of the entire rally between $1,130.00 and $1,208.00. A bullish signal appearance here can be bought, with a risk below $1,130.00. The metal would also face resistance at $1,185.00, which is a back side of the trend line support. Trading recommendations: Remain flat for now. Looking to buy on a bullish reversal. Technical analysis of Silver for December 01, 2014 Technical outlook and chart setups: Silver has taken stops out on remaining long positions held earlier, and has dropped to $14.40/50 levels as seen here. Recommendations are to remain flat for now, though indicators are showing divergence with respect to price movements. The metal has tested support of February 2010 (at $14.63 levels). The current fall could possibly be a thrust, before resuming rally. Aggressive trading strategy would be to initiate 50% long positions now with risk below $14.30. Resistance is seen at $15.85 levels, followed by $16.70, $17.75/80 and higher up, while interim support is at $14.50/60 levels. Bears seem to be in control at the moment and the metal needs to take out $16.70 resistance to confirm bullish reversal. Trading recommendations: Remain flat for now. Aggressive trade setup would be to initiate only 50%, with stop at $14.20.
Posted on: Mon, 01 Dec 2014 10:12:30 +0000
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