Gold continues the consolidation trade and ends the week about where it started. So far the week’s action is forming a “coil” or a triangle where the highs are progressively lower and lows are progressively higher. This choking down of price action is classic consolidation. The Bollinger bands will typically contract during this type action, showing volatility coming out of the market. Support remains at the 1475 level with resistance at 1520. Price is remaining in the intermediate trend channel, hugging the bottom boundary. The chart is neutral until the last swing high or low is taken out.The rest of the technical indicators are neutral and not trending in any way. Stay put, stay the course, and let the market speak.
Silver was up today but remains in a confirmed downtrend after yesterday’s lower low was set at 32.31. Price rallied up to and found resistance at the Fibonacci 61.8% retrace level. support is still holding at the 33.50 level for now after being penetrated temporarily yesterday and last Friday. Resistance overhead is still 39.46. Stochastic is back in over-sold territory and RSI is tracking sideways in bearish territory. I still believe the 200 day moving average is worse case scenario and will come into play if we see another swing low made next week.