Tuesday, January 27, 2015

Gold in uptrend(?), Silver and miners still in downtrend

Gold managed to penetrate the heavy resistance line from 2012 and EMA(weekly) 21 and 55 which is bullish.However RSI14(weekly) bounced at resistance area 60-65(red line).

Silver and miners(GDX) are still below their heavy resistance trendlines from 2012 and EMA55(weekly) respectively.

Will Gold drag Silver and GDX or vice versa?

We believe that the level of 1235-1240$ is very important for gold.Bulls need to see price of gold above that level and preferably RSI14(weekly) breaking above its respective resistance area of 60-65(usually that happens during a 3,III).If Gold moves below that level the bullish scenario is loosing steam...