Gold and Silver: major support looming for both by Mary McNamara

Silver and Gold have recently broken through key support levels but further strong support looms large below the current price on both. 

 Silver: this recently broke down through $17 support but key $15 support is just below current price. A break and hold below $15 would suggest a test of down near $8 as this is last major swing low. Traders shorting from current levels need to be aware of the potential support coming in at $15:

Silver monthly:

SilverMonthly

Silver weekly:

SilverWeekly

Gold: this metal has recently broken through key $1,180 support but the 61.8% fib of the last major bull run, near $1,145, is just below current price. Traders shorting from current levels need to be aware of the potential support coming in from this $1,145 level. Any break and hold below $1,145 would suggest the whole number $1,000 as a possible target followed then by the 78.6% fib near $945 / $950 and the monthly 200 EMA:

Gold monthly:

GoldMonthly

Gold weekly:

GoldWeekly

USD strength has put a lot of pressure on these two commodities as well as others like Copper etc. Continued USD strength would support further bearish moves on these two metals but any USD reversal might see these metal support levels kick in. Thus, all commodity traders should be keeping one eye on the USD!

USDX monthly: has made a bullish triangle breakout but has not moved too far just yet. Friday’s NFP may have some bearing here:

USDXmonthly

USDX 4hr: the index seems to have paused above the breakout zone:

USDX4

Summary: traders need to keep an eye on the USD index if trading these two metals. ‘Short’ traders need to be aware of potential $15 support for Silver and $1,145 support for Gold.

The post Gold and Silver: major support looming for both. appeared first on www.forextell.com.

Leave a Reply