Sell Signals Generated on Gold and Silver

Share On Facebook
share on Linkedin
Print

GOLD (XAUUSD)
Dominant Bias: Bearish
Gold experienced a massive sell-off last week, which rendered the recent bullish bias completely invalid in the market. The market has been very volatile since then, with short-lived victories that are alternated between the bull and the bear. In this kind of market, a wide stop is recommended; plus the most probable direction is southward. Only a movement above the supply level at 1324.00 could make the probability of the bearish direction useless. Meanwhile, the price may reach the demand level at 1293.00. After all, that demand level was tested during the massive sell-off that happened last week.

SILVER (XAGUSD)
Dominant Bias: Bearish
There is a Bearish Confirmation Pattern in this market, which was brought about as a result of the strong weakness that happened last week. It is known that Gold and Silver are highly correlated (positive correlation), and any discrepancy in the direction would create a profitable trading opportunity, especially the one that causes transitory negative correlation. Right now, it is most likely that this commodity would continue its weakness, but the volatility in the market must be taken into consideration. Sellers may want to take some profit at the support level of 20.3300, for this may be an area where the price would bounce upwards significantly.

Source: Tallinex.com

Learn from the Generals of the Markets: Market Generals

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20211027 01:00:52