Gold, silver prices slip; key economic data due this week
I was not overly convinced of the Key Reversal Up right at the end of August but I did note it in my last commentary. I wasn't the only one, as though we edged higher over the next two weeks it was tepid until we had a Bearish Engulfing Pattern on the Daily Chart above.
This should have been the signal to see prices head lower but we didn't manage it. After two days of trying, the market gave up and gapped upwards - that was the real move. Since then we've travelled sideways to a little higher but last Friday we had a good try higher with a nice Key Reversal Up.
This ought to be the signal to try higher but we are awfully close to the three main resistances for any move up - the recent 50% Fib at 361 1/2, the Medium MA (currently 363 1/2) and the Long MA (currently at 363). The acton of the market close to these levels will dictate the future as it would seem with recent higher lows we may see a reasonable chance for higher prices. The alternative is back down to 328 1/2!
Support is currently at 353 3/4, 347 3/4, 346 1/2, 341 3/4, 336 3/4 and 328 1/2.
Resistance is currently at 356 1/4, 358 3/4, 361 /12, 363 (dynamic) - 363 1/2 (dynamic) and 369 1/4 - 370.
With MA's one up, one down and the two most important and increasingly closer going sideways, I think it appropriate to move the bullet point above into Neutral.
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