Trading tactics for gold and silver

[sanjaynjain]

Right now both gold and silver are deeply oversold on a short-term basis and it is thought to be too late for traders to sell. Precious Metals stocks are also deeply oversold and candlestick action yesterday points to a recovery soon, probably after a brief period of thrashing around near current levels, which may well involve a drop to slightly lower levels first. Again, those who didnt sell earlier should get an opportunity to thin positions on a significant bounce in coming weeks

 

[chamara6]

Thanks. Nice to know that both precious metals might have bottomed out. Hope to see them on a higher range.

 

[sanjaynjain]

August gold futures have recently penetrated on the upside and negated a downtrend line drawn from the May and mid-June highs. Prices are working higher from the June low of $859.60.

Price action Monday did see a solid profit-taking pullback from the recent gains, but no serious chart damage occurred. The June low of $859.60 is solid technical support. Below that lies technical support at the May low of $850.50 in August gold futures.

Overhead technical resistance lies at last week's high of $911.00 and then at the June high of $912.50. "A close above those two key resistance levels would be significantly bullish to suggest another leg up in prices in the near term

 

[sanjaynjain]

silver dont miss this

Silver gave a major buy signal late last week, breaking out above the 3rd arc of a 3-arc Fan Correction pattern .new uptrend is starting.On the 1-year chart we can see this breakout It is interesting to observe at the point where the 50-day moving average has almost fully corrected back to the 200-day, and the 200-day has caught up with price, which means that all moving averages can now swing immediately into bullish alignment to support a major uptrend if any further upside progress is made.