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Gold Completes A Gartley; Silver Is In An Ascending Triangle
Written by article default Tuesday, 01 February 2011 16:10
Gold (XAU/USD)
- Gold: A swing projection targets 1361, but has shown a double top just below the 1350 area. The market retraced 61.8% but then rallied again. This rally is now testing the double top.
- It also retraced slightly more than 61.8% of the decline.
- Note also the bearish signal as the market completed a Gartley. In the near-term the market is bearish.
- The RSI failed to break back above 60, so it has not shown near-term bullish continuation and instead further consolidation.
- If this consolidation does not break the rising support, we might have a bullish continuation.The 1330 area would be final support to the current bearish attempt, for a bullish continuation.
- However, if risk appetite improves in the markets, we might have a decline towards 1325-1323 area. A break below this area then opens up a retest of the bottom action around 1310.
Silver (XAG/USD)
- Silver is in a triangle (basically an ascending triangle with bullish bias) being contained below 28.40 and above 27.50. The upside targets above the 28.40 resistance are at the Fibonacci cluster near 28.80, then 29.30.
- The downside below 27.50 has the support of 26.50 in sight.
- Until the RSI breaks below 30, and the market breaks below 26.50, we should consider Silver in a consolidation of a larger degree as well. Below 26.50 and with a the RSI in the 1H chart at least breaking breaking below 30 is the 25.00 pivot as target.
Will the NFP on Friday affect Gold and Silver? We would love to hear what you think.