Central Bank Death Dance: Good & Bad News For Gold & Silver

The trend remains down, and there is no evidence of concern that Bears are in trouble. The down trend has weakened, a little, but it has not ended. As long as gold remains in this condition, expectations for sharply higher prices will not be realized.

gold_price_monthly_chart_04_october_2013

Mention has been made several times how wide range bars tend to be controlling for several bars of the same time frame moving forward. The mid-September bar has been controlling up to the past week, maybe more into next week. Both wide range bars show poor closes, and the last three TDs show a lack of demand.

Now into four months of a sideways TR, we need to see buyers show demand with wide range bars to the upside on increased volume. Until that happens, sellers retain the edge.

gold_price_daily_chart_04_october_2013

The dominating feature on the weekly chart remains the gap from 10 August, and we drew attention to it immediately for its potential importance, [See Fundamentals Never Say “When.” Charts Do, 4th chart]. The high-end close, after a retest of gap support makes a positive statement. There is a clustering of closes, and silver may be near a turning point, if buyers can step it up. Sellers are not showing a strong presence, so it is opportune for a rally if buyers can take advantage.

silver_price_monthly_chart_04_october_2013

The farther price moves along the Right Hand Side, [RHS], of a Trading Range, [TR], the closer price is to making a directional resolve. The fact that the current TR is on top of the TR from June through August is a positive development. Buyers need to create wide range bars to the upside, on strong volume, otherwise, expect more of the same or even lower should buyers be unable to defend this TR.

silver_price_daily_chart_04_october_2013

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