GOLD CHART
If it’s Friday it must be gold down day. Friday’s have been a curse for gold. I thought they might leave it alone since options expiration was over but it’s the last trading day of the month and the control boyz have no desire to see it close above 1400.
We reached our 2nd resistance level of the week listed on the website as 1421-1425. You can see the purple line where gold touched. The current pullback has support at 1385-1389 where the 200 day moving average is (1389). It’s an important area as there is not another trend line until 1360. There is minor support at 1377-1380 where some daily lows were registered but other than that the next purple line is 1360. That green 200 hour moving average is at 1389. Resistance is the purple line we hit for a high today at 1420. The key is the chart shows that gold is STILL in a downtrend channel. It’s trying to start an uptrend channel with the rally this week. Gold needs to close above 1444 to neutralize the downtrend channel but more important that purple line just under 1460. Short term cycles favor higher into next week the next short term cycle is fast approaching already (June 7th – plus or minus 72 hours).
In summary, we have 1420-1425 as an odds favorite high point for the week on the website and you can see by the purple line why it was one of the two area’s we chose. We we’re hoping for less of a pullback today but we did mention how bad Friday’s have been for gold and today was no exception. The touch of 1389 is right on the green 200 hour moving average so we expect 1385-1390 have a good chance of being today’s low.
SILVER CHART
Silver is trying to create a purple uptrend channel but it is still in the yellow downtrend channel. Support is that purple channel line at 21.80-22.00 area. The 22.10 area has been touched everyday this week except yesterday. Thus silver remains weak in comparison to gold as silver’s low of April 16th was 22.00 and gold 1322. Silver is only 20 cents higher while gold is 70 dollars higher than that date. That weakness is a concern over all. The plunge to 20.25 two weeks ago was a 10% correction in just 4 minutes and since that reversal back up, the low has been 21.70 – 21.90. A failure to hold 22 today would mean a new weekly low and that would be concerning. Support is the 21.70-22.00 area and then at 20.60-21.00. Resistance is the 23.30-23.50 area and we must get a daily close above that level to neutralize the short term downtrend. The bigger downtrend is the yellow lines & the highest of the yellows is the 24.00 area. Until we get a weekly close above the yellow lines, the intermediate term is still in a downtrend (as is the medium and long term). The low at 20.25 should be a medium term low that forges a move to test the 25.50-26.50 area during June but we’ve got to get above that 23.30 level for starters. In summary, the downtrends are still intact in gold and silver. May/June has had 3 yearly lows in the last nine years so there is some precedence for a rally to develop in June.
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
