Gold & Silver at Critical Points in This Cycle

With gold trading near the $1,600 level and silver around $28, today King World News is pleased to share a piece of legendary technical analyst Louise Yamada’s “Technical Perspectives” report.  This information is not available to the public and we are grateful to Louise for sharing her incredible work with KWN readers globally. 

Metals: Gold & Silver

By Louise Yamada Technical Research Advisors, LLC (“LYA”)

July 5 (King World News) - Gold spot price (GOLDS-1,597.40) is little changed over the month, unable to hold definitively above 1,600, yet still failing to break below critical support at 1,539 (see Figure 9).  A more neutral range may continue for a time as the weekly momentum remains on a Sell, though the angle of decline has moderated.  Sideways action could establish a shelf of repair for a renewed attempt to rise at a later date.  Parameters remain the same as last month, awaiting either a break to a new low below 1,539, or a move up through 1,641 (price resistance) and then through 1,700 (downtrend line) to suggest an advance may sustain.

Silver:  Post Support-Break Bounce?

Silver spot price (SILV-27.48) briefly broke support at 27, and is struggling to hold the 2008 uptrend (see Figure 9).  The weekly momentum (not shown) remains on a Sell, though easing.  Now price needs to sustainably regain 27 and then 30 to suggest there is renewed strength to overcome further resistance.

A continued failure below 27 would leave our potential toward 25, even 20 in place.  Backing and filling between current levels and 30 could constitute a repair process for the extended decline.

As Managing Director and Head of Technical Research for Smith Barney, Louise was a perennial leader in the Institutional Investor poll, and was the top-ranked market technician in 2001, 2002, 2003 and 2004, before going independent.

Original Source: King World News