Technical outlook for gold / silver prices
- Gold set to withdraw approximately 200 days
- The price of silver the action has a straight bearish appearance
Gold price and silver outlook: The look of the XAU and XAG is set to decline
Gold has risen steadily despite maintaining the dollar’s supply, which is somewhat bullish. However, the strength of the dollar for 200 days and beyond could bounce off the rails. The price increase has carved a wedge, which in the context of a low low rebound suggests that the decline could occur quickly if the bottom trend line of the pattern breaks.
Pressure from narrowing pricing may very well lead to higher prices. What matters is which side of the formation is damaged. If the bottom trend line is broken, look for gold to fall back to the May 2019 trend line, a recently tested and maintained threshold. This would be another very meaningful test for gold, as the breakdown could push it much lower.
If gold continues above the funnel, it may separate in 200 days and rise toward the almost 1-year trend line.
The bottom line is that there is a decent-looking wedge to look at low, and this is likely to cause a breakthrough in one way or another.
Golden daily schedule
Golden 4-hour chart
Silver looks straight bearish at this stage, much more than gold. The decline in mid-June following the Fed meeting has generated little buying interest and led to a side-turn. This type of pricing, which follows strong movements, usually indicates that some level of follow-up is imminent.
The 200-day MA has helped keep the floor in the shape of a bear flag during this deadlock. The trend line, which has been expanding since November, offers some additional support. This line also coincides with the lowest value in the recent range of 25.52.
This makes an interesting setting.
If the price performance shows another significant level of support below and close to another, we may see a relatively explosive movement below when the support breaks. We want to pay close attention to how things come out with support (if it should), as this can quickly end the momentum of weakness in the event of a strong reaction.
By now, progress may be skewed, and this bias may either be significantly enhanced or failed when testing another higher level of support.
Silver day schedule
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