Silver and Gold Update

Hitting Resistance

Precious Metals Review & Outlook
03/18/2017 thru 04/14/2017

Guest Post from the Free-Bullion-Investment-Guide’s latest blog post.

 

For the last two weeks, gold and silver have hit resistance as they’ve moved up in trading.

Silver’s resistance levels are at $18.30 and $18.50, while gold’s are at the $1250 and $1270.

Last week, they both were able to breach their first levels of resistance, but they were not able to break above the latter two resistance levels.

The precious metals charts below are showing that this week will most likely be a week of consolidation and profit taking.

However, fundamentally we still have the French Elections coming up on April 23rd which should continue to support the prices of silver and gold.

Also, Janet Yellen, the Federal Reserve Chairman made a surprise announcement that on the 10th of April she will be making a speech and taking questions.

This may have something to do with the Resignation of Jeffrey Lacker or it may not, either way, whatever she says about the future of interest rate hikes, could be either positive or negative for the precious metals.

Furthermore, fundamentals trump (no pun intended) technical analysis so depending on what Yellen states in her speech, it could change the direction of the market in an instant.

But, barring anything out of the ordinary, this week’s charts are showing us that a new negative pattern will reverse the prices of the precious metals in the short-term future, while their long-term direction is still positive.

SILVER

Three weeks ago, I posted the chart below for silver, in it, you could see the Old Falling Expanding Wedge and a New Falling Expanding Wedge (bullish patterns) in the chart.

Over the last two weeks, the New Falling Expanding Wedge pattern has been playing itself out as expected.

2017 - March 18th - Silver Price Chart

Now that silver has finished playing out the Falling Expanding Wedge pattern, a new Rising Expanding Wedge (bear pattern) has formed.

In addition, the MACD and RSI, lower indicators, are showing that silver is hitting resistance.

But, even though a pullback is expected, silver is also expected to continue to trade inside its ascending channel.

2017 - April 9th - Silver Price Chart

Silver’s Price Resistance &
Support Levels

Silver’s Resistance Levels

$18.75, $18.50, $18.30
Silver’s Support Levels

$18.00, $17.70, $17.25

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GOLD

Gold’s chart patterns may look familiar….

Three weeks ago, I posted the following chart for gold, and like silver’s chart, it too showed an Old Falling Expanding Wedge and a New Falling Expanding Wedge (bull patterns).

2017 - March 18th - Gold Price Chart

Charts provided courtesy of TradingView.com

Over the last two weeks, the New Falling Expanding Wedge pattern has been playing itself out, and now that the pattern has been fulfilled, a New Rising Expanding Wedge (bear pattern) has formed in gold’s chart.

2017 - April 9th - Gold Price Chart

But, gold’s bottom indicators aren’t showing the reversal in the trading pattern like silver’s indicators are, which may be an indication that gold is taking back the lead in their short-term trading patterns.

Gold and silver’s trading pattern have been discussed in these blog posts: Gold leads SilverGold still leads Silver, and The Freak is Back on the Leash.

However, the New Expanding Falling Wedge is looming over Gold’s price, so like silver more consolidation in price is expected.

In conclusion, for gold, although a consolidation or pullback is expected, gold, like silver it is expected to continue to trade inside the rising ascending channel.
Gold’s Price Resistance and
Support Levels

Gold’s Resistance Levels

$1300.00, $1270.00

Gold’s Support Levels

$1250.00, $1225.00, $1215.00

Have a Great Week.

Steve…

Thanks to Steve Warrenfeltz.

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Gary Christenson

The Deviant Investor

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