Gold and Silver Update – 24 May

Gold is looking real good right now. Price made up to resistance at 1526 and has nothing between present price and all time highs at 1575 but the Bollinger Band. Some follow through today to close above 1526 would be highly constructive. Support is coming in at the 45 day moving average which is currently at 1482. Significant chart support is coming in just below there around 1470. MACD is putting a bullish cross and suggests momentum is in favor of higher prices. RSI has room to run and is at a moderate 60 level. It looks to me as if gold wants to run for 1575.

The Elder chart is painting a green bar and calls for long trade exposure.

The longer term chart shows how strong that chart support is at 1470. That level just happens to also be the Fibonacci 38.2% retrace level, a very strong natural level of support. The longer term trend is intact.

The one year chart gives the recent trading range some perspective.

Silver had a really good day and painted a big white candle. 35 gave way in a convincing manner and resistance waits at 39.46, a previous swing high and the 45 day moving average. The 18 day moving average is the nearest moving average overhead and is the initial target when slow stochastic crosses the 20 level from an embedded state (3 days below 20). Support is coming along the 100 day moving average, currently 34.90 and from swing lows around 33. The short term trend is up with higher highs and higher lows. I look for a move to test the swing high at 39.46. MACD is putting a bullish cross and bodes real well for a momentum move higher.

The Elder Impulse chart is painting the first green bar since the rollover. the green bar indicates exposure to long trades, but it is supposed to be ignored when price is below the 65 day exponential moving average, currently at 37.06. I would suggest this is close enough for government work and I got in at the close.

The longer term chart shows some natural resistance at the Fibonacci 50% retrace level around 38 and then the 38.2% retrace at 40.79.

The long term chart shows the trend channel remains intact. Price ultimately found support at a natural Fibonacci level, in this case the 50% level.

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

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