Gold and Silver Technical Outlook:
- Gold has the 200 day moving average just below
- Silver Is Trading Near 2020-2021 Support
Gold has been trading lower with raging rates and dollar strength, but the decline may soon end, at least for a rebound. There is good support not far below via a pair of confluent technical lines.
The 200 day moving average is at 1836 and is starting to stabilize. Just below this point is a trendline from the August 2021 low, when a mini-flash even occurred. The trendline is around 1830 or so.
A run through the 200-day that sees price reversing from trend support to close daily above 200 could present an attractive countertrend opportunity for potential buyers. For shorts, this could be a signal to reduce exposure or use a trailing stop strategy.
Gold (GC) Daily Chart
Gold chart by TradingView
Silver continues to lead the way lower, but like gold, it also has strong support just below. The low created in late 2020 at 21.81 is in danger of being breached, but not far below at 21.41 is a double bottom effort from last year.
A beacon and reversal from support or a run and reversal (even better) could lead to a rally in the days ahead. The rally would initially be viewed as a countertrend, but given the nature of silver, it could be a powerful upside move in a fairly short time frame.
A breakout below support would turn this current low into a ceiling to watch for a rebound. For now, though, look at it through the prism of support until proven otherwise.
Silver (SI) Daily Chart
Silver Chart by TradingView
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—Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
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