2 possible scenarios: 1) WIth the RSI at support, we may see a support to test higher prices first. Current price action could be a great buying opportunity with a limited upside of 17.20 2) History tend to repeat itself and we are not ruling out that prices could take a taken like Palladium, taking out all meaningful support zones. Current price action is...
Headline news continue to favour the dollar bull. Comments made by Fed Powell seems to deviate from Miss Yellen latest dovish speech. The caveat from the latest speech has certainly helped the dollar to stop running lower after 3 weeks of selling. Dollar index is effectively trading within a symmetrical triangle and price action RESPECT Fibonacci retracement on...
We took the risk to go long as there were several key support zones but price action sliced through and broke lower. Even the 200 WMA did not act as a strong support and the flush came hard on Palladium. This has certainly damage the chart and the weekly MAs could soon roll over lower (20 WMA already crossed below 100 WMA and 50 WMA could follow suit - potentially...
Weekly RSI may have bottomed and this offer a great swing long opportunity with a great RR. With a risk of 10 -20 points, the reward that we are after is at least 60 points (1:3) ratio. Here are some of the reasons to go long: - Platinum is oversold after the FOMC statement that had a revision lower on US GDP - Dollar weakness has not transpired into any buying...
Silver failed to close above the 20 WMA at 16.43 and that will act as resistance. Only a clean break and close above will give the white metal a bullish momentum to possibly test the 50 WMA which currently sits at 17.25. Previous cumulative red candles for 4 weeks in a row (end of March 2015 to April) has actually transpired into a similar situation where the...
Weekly chart has posted a rather bullish setup on gold. Here are a few reasons why we are semi-bullish: - Since March low, we have had a higher high and higher low - The market tried to find sellers to drive prices lower but failed several times (bargain hunters) - Note how the vicious selling stops at 1142.59 but have recovered since - The Bear looks ready to...
Nothing moves in a straight line and with 3rd consecutive weekly close of lower low, the dollar index look set for a retracement of some sort. Mark that we have host of economic data next week that could help support the dollar for another week. In the medium to long term, we envisage a weaker dollar index as the last Federal press conference rings a clear dovish...
Yesterday price action does not give any confidence that a corrective rally is underway and this is a second count ever since the downtrend started. This not only indicate a bear market that is heavily dominated by sellers but also the lack of interest of bargain hunters. Downward economic revision on the US GDP may have been one of the factor here. With...
Daily Update - 4 hourly Head & Shoulder pattern is playing out - Head at 97.50 and neckline was at 94.84, giving a distance of 2.66 - Target for the H&S is at 92.18 which hits the 38.2% Fib retracement from the 2014 rally - Current PA we have minor support on the trendline then with key support at 93.13 - Break below 93.13 opens up more selling where price...
Daily Update - We have to point out the resilient silver as it holds above 15.80 levels - However, we are still unsure if this is the bottom for a reversal or there are more rooms to test lower first - We will not pick the bottom but will wait for a confirmation - Note RSI has not reach oversold zone and this could be a potential bear flag formation - Note the...
Daily Update - End of the corrective rally could instigate a move lower - Failure to break above 1189 (38.2% Fib) and 1192 (suggest a weak corrective rally) - Only a break and close above 1205 and 1216 will indicate a bullish reversal - Bollinger band is converging for a potential breakout - As shown on chart above, BB converging with all the MA (June 2014) could...
Although it has yet hit the target of 722, Palladium continue to the downside as per our analysis. We are looking for one last flush to the downside to retest the red rising trend line and possibly 200 WMA at 722 levels for support. A retest for support and a reversal doji will allow palladium to stage a corrective rally to test for the 20 WMA and 100 WMA.
Weekly Platinum has created an inside day and a grave stone doji to end the week. This could indicate 2 scenarios that we will discuss below. 1st scenario Is the metal ready to reverse higher and undergo a corrective rally? Only a break and close above 1123 will warrant a higher corrective rally. One thing to point out is that this is a weak inside day since...
With the weekly Bollinger band converging, we cannot ignore that silver could potentially start to carve out a bottom. A rally in the white metal has often been the catalyst and confirmation for the rest of the other siblings to go higher. Given its current state, we cannot ignore that silver could retest 15.60 levels and even lower at 15.45. We will not rule out...
Gold weekly chart indicate a weak Inside day pattern (open to either a Reversal or Continuation pattern). This also indicate that price action could consolidate between 1205 to 1160 range and only a break of either direction will trigger a bigger move. 1st scenario Break and close below 1160 then AB = CD pattern could play out to target 1130 levels again for a...
This week there are 2 Inside days. The first inside day mark the end of the uptrend line. In addition, price action shows a lower high and lower low. This adds to the conviction for a trend reversal as RSI indicate a bearish divergence. The weekly chart also added a bearish engulfing candle which suggest many longs are trapped and many wants out. Weekly chart...
As long as price trade below 100 ma and USD sell off continues after FOMC meeting that should be deemed priced in to be hawkish anyway. Also consider many longs are trapped at the top and shorts on yen are at all time high plus Kuroda comment then a stronger Yen is viable into next week. Entry@ market Stop@ top of the magenta line Target@ as discussed.
Daily Update 1 hourly 200 ma acting as strong resistance at 16.21 as it coincide with downtrend line Other MAs are converging and could potentially roll higher RSI divergence continues (bullish?) 4 hourly RSI Divergence here, potentially basing pattern here? (bullish?) 16.58 strong resistance here as it coincide with 200 ma 100 ma just cross below 200 ma...