GOLD CHART
Gold is pulling back this morning and so far the low is one dollar below the last Sunday night low of 1589.60. The April Options expire today and there’s a chance that the control boyz are taking out the 1600 calls. They have a tendency to do so on these expiration days. Support today is the 1585-1590 area and the weekly at 1560-1565. First Resistance is the now the 1600-1605 area at the green 200 hour moving average and the purple line. The first gold line near 1610 is the pivot point for today. Additional resistance is the upper gold line at 1618-1622 and then the purple line at 1630. On the negative side is silver has been very weak with an ugly looking chart pattern. One concern is that gold may have been rallying last week on just the Cyprus banking concern. The pattern is also choppy and overlapping to some extend and so my mood is cautious. The metals have failed so many times on rally attempts that until we get above 1620, I remain cautious. The short term trend is still up and odds are that the options expiration boyz are playing with the market this morning. If gold can recapture 1600 on Tuesday the odds will increase that is what we what occurred. Until then its best to remain a bit cautious.
Silver doesn’t look good and that has me concerned about gold. Its unusual that the metals don’t work together. Silver just hasn’t been able to get out of its own way and the 3rd failure to get above 29.30-29.40 last week is worrying. Support is the 28.30 – 28.40 area. The March low is 27.92 and that could lend support at the channel line that stands at 28.00. If 27.80 is broken to the downside, my concern on the metals will grow.
You can see the silver price action is barely holding sideways trend and it’s a very choppy and overlapping price action. That usually favors the downside so its best to be cautious at the moment. The pattern is so ugly that it worries me on gold. In summary, while golds short term trend is up, its not the most robust action there either. Silver needs to get out of this area and close above 29.40-29.60 soon or more downside pressure could be seen.
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GOLD CURRENT TRADE
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Our Position
Bought 1Apr Gold on 25/03/2013
Entry: 1592
Stop : 1578
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SILVER CURRENT TRADE
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Our Position
Bought 1May Silver on 25/03/2013
Entry: 28.60
Stop : 28.30
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YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED.
Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
