Silver #27 XAG
A member has asked for an updated chart on Silver. My thoughts at the moment are that there could be some hesitation at the old gap (khaki box), and that would be a good place to look for any reversal pattern. Be aware that Kumo is thin at that point but there may just be a retrace to test the lower Kumo base, then perhaps another move north. I personally like silver for the long term.
Hi Arco – It is usual for gold and silver to follow similar patterns I believe. We have a purple trace from you for gold which indicates a good move down and I was hanging in there with my gold shorts based on that purple trace graph. Now I see this silver chart I am totally unsure. Wouldn’t gold also be heading up like silver? Is it possible to advise us on purple trace charts when they become invalid ? ie if “x” area is broken purple trace idea may now be obsolete.
Hi SJ. Commodities are bonus charts that I post as time permits, so please always ask if you need an update. I actually made a comment regarding Gold March 3rd, 2010 with a yellow box as another potential resistance/reversal target. Quote “The south bound move on the Purple Trace ran out of steam after a profitable move lower of around maximum $US39. Daily action has now retraced higher into the thick bearish Kumo, and just above where I have placed a yellow box there are various resistances that may affect upward progress (Chikou, Kumo/Senkou B, potential parallel Channel line). Hard to predict what will happen at this point, so it just means watching until a confirming pattern appears before initiating trades. http://www.lincolnfx.com/forex-forecasts/tag/gold/
Hi Arco – Thank you. I appreciate the clarification.