Technicals: Gold Working Its Way Higher

Gold is working its way higher with a nice pullback to what should be support along the median line of this modified-Schiff pitchfork. This chart is meant to emphasize the failed triple-bottom zone where, IMO, a significant amount of resistance can be expected. After a multi-year downtrend many people were expecting the $1180’ish level to be the bottom. When it failed in late-2014 sentiment became very dark which of course set the stage for a quick rally up to $1300. Breaking above this triple-bottom zone and establishing it as support again will be a major milestone.

gold_daily_26oct2015

Silver is showing strength but being held back by resistance from the 200 day moving average. The $15.70 level is providing support along with the median line of the blue Andrews pitchfork. The rising 50 day MA is encouraging although the recent MACD sell signal suggests price weakness.

silver_daily_26oct2015

In normal markets we would point at the Copper chart and talk about deflation and a global slowdown. While there is certainly a global slowdown occurring, some (most?) of the steam coming out of the Copper price is caused specifically by the slowdown in China’s economy. Perhaps they have decided that they have enough ghost cities at this point. Google “China ghost cities” if you aren’t familiar with this situation.

copper_daily_26oct2015

By Bryan from Pitchforkplayground.com

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