Gold and Silver charts: consolidating after touching lower tops


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Gold chart pattern

The daily bar chart pattern of Gold has formed a large ‘cup and handle’ continuation pattern. The pattern is more clearly visible on the 50 day EMA. An upward breakout can be expected after the ‘handle’ formation is complete.

Note that a fall below 1260 – which is at the mid-point of the ‘cup’ – will negate the ‘cup and handle’ pattern. Gold’s price is trading above its rising 200 day EMA in a bull market.

Daily technical indicators are looking neutral to bearish. MACD is moving sideways below its signal line in bearish zone. RSI is facing resistance from its 50% level. Slow stochastic has emerged from its oversold zone.

After a sharp rise above 97.70 on Mar 7, followed by a sharp fall to 95.20 on Mar 20, the US Dollar index recovered to 97.10 on Apr 2. It has been consolidating between 97 and 96.50 since then. Gold’s price has been consolidating as well.

On longer term weekly chart (not shown), gold’s price closed above its three weekly EMAs in long-term bull territory. Weekly technical indicators are giving mixed signals after correcting overbought conditions – hinting at more consolidation or correction. 

Silver chart pattern


The daily bar chart pattern of Silver had a brief foray back above its three daily EMAs into bull territory, and an intra-day move above 15.60 before bears decided to take charge again.

Silver’s price dropped below its three EMAs, and the 14.90 level on Apr 4, before pulling back towards its falling 20 day EMA. It remains below the 200 day EMA in bear territory.

Daily technical indicators are in bearish zones. MACD is facing resistance from its sliding signal line. RSI is trying to move up to its 50% level. Slow stochastic has emerged from its oversold zone.

On longer term weekly chart (not shown), silver’s price is facing resistance from its 20 week EMA, and closed well below its 200 week EMA in a long-term bear market. Weekly technical indicators are looking neutral to bearish. MACD and RSI are in neutral zones. Slow stochastic is falling rapidly towards its oversold zone. Some more correction may follow.

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