Gold and Silver – 16 May

Gold closed slightly down today and remains in the consolidation triangle that has formed over the last week. As we move to the apex of the triangle, a break will occur. Will it be higher or lower?  Wish I knew the short term prognosis, but the long term prospects are wildly bullish. Support an resistance are annotated and remain unchanged from Friday. Price is being supported by the lower rail of the trend channel. A break lower from here puts 1475 in play, higher and we’re headed back to 1520.

Silver was also down today, only is was down a lot harder than gold. No surprise there. It closed right on support at 33.64. Unlike gold, we have a well defined downtrend in place defined by lower highs and lower lows. The trend stays intact unless 32.31 holds as a swing low, then the trend would be neutral. If 32.31 does not hold as support, I expect a fairly quick move to the 200 day moving average (red) and support near 29.0.

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This entry was posted in Gold, Matrix Sentry TA, Silver, Technical Analysis. Bookmark the permalink.

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