Hi, everyone. Today I want to continue my predictions regarding short term trends in financial markets. The post will be short for I am only going to speak about silver and gold. I believe I do not have to remind you how bullish I am towards precious metals. However, if we talk about short term or medium trend in these commodities I think they are about to go down a little. This is a bearish technical picture that I see for the securities.
I expect silver to go down
I told you yesterday, that I see lower highs in Yen pairs and it convinced me that Yen was about to strengthen. The same I see when I look at silver charts. Even thought silver bottomed on the 12th of May, it failed to reach previous high and formed a descending channel. Some technical would call it a flag and that would be bullish, but as you know lots of technical patterns end up being fake. So, I predict that the security will reach its� previous low at 32.30 and then possibly go 31-25 level. This would be support area.
Possible support levels
I am not some market magician and cannot predict exact levels where this or that security might stop falling. However, by using support and resistance levels as well as some other technical indicators we can make some preliminary predictions. So, by looking and weekly Bollinger bands I see support at 30 level, which would be the lower part of the band. A surge that we saw in silver made the bands go apart pretty sharply. The collapse and the range that we have seen recently will make the bands to get closer. So, I think that 30 dollars per ounce is a good place for support in silver.
Wait for reversal signals at those levels
I also marked 31.26 level, because it used to be a resistance and 26.37 level, which used to be support. Remember that these levels are only for forming expectations and are not some signals to buy or sell. You will have to wait for other signals for possible reversal and entry back to buy positions. When and if silver as well as gold do fall, then I will be able to talk more exactly about other technical aspects you can look for in your charts.
See also:
Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.
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