After opening the week at 1339.50, the gold market made a brief new weekly high of 1340.90 on the downing of a Malaysian Boeing 777 over the Ukraine early Thursday morning. On Friday the market came down and tested the 50 and 200 day MA of 1299.48 and 1289.52 and found good physical buying support to rally and close at 1311.40. This was the first down week after a string of new highs were made over the past 5 weeks.
After Monday’s opening at 21.49, the silver market made a brief new weekly high of 21.53 early Thursday morning. On Friday the market came down and tested the 50 day MA of 20.79 and found good physical buying support to rally and close at 20.93. This was the first down week after a string of new highs were made over the past 5 weeks.
Echoing comments I made recently:
“As we can see all swing targets have been completed and accomplished for both metals last week.”
For a more detailed technical landscape, let’s take a look at the weekly charts for next week and see what trading/investment opportunities we can identify.
The August gold futures contract closed at 1311. The market closing above the 50 day MA (1299) is confirmation that the weekly trend momentum is bullish. A close below the 50 day MA would negate the weekly bullish short-term trend to neutral.
With the market closing below the VC Weekly Price Momentum Indicator of 1315, it confirms that the price momentum is bearish. A close above the VC Weekly, it would negate the bearish signal to neutral.
Cover short on corrections at the 1289 – 1267 levels and go long on a weekly reversal stop. If long, use the 1267 level as a Stop Close Only and Good Till Cancelled order. Look to take some profits on longs, as we reach the 1337 – 1363 levels during the week.
The Sep Silver futures contract closed at 20.93. The market closing above the 50 day MA (20.79) is confirmation that the weekly trend momentum is bullish. A close below the 50 day MA would negate the weekly bullish short-term trend to neutral.
With the market closing below the VC Weekly Price Momentum Indicator of 21.03, it confirms that the price momentum is bearish. A close above the VC Weekly, it would negate the bearish signal to neutral.
Cover short on corrections at the 20.53 – 20.13 levels and go long on a weekly reversal stop. If long, use the 20.13 level as a Stop Close Only and Good Till Cancelled order. Look to take some profits on longs, as we reach the 21.43 – 21.93 levels during the week.
The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed herein constitutes a solicitation of the purchase or sale of any futures or options contracts.
Disclaimer: Trading Derivatives, Financial Instruments And Precious Metals Involves Significant Risk Of Loss And Is Not Suitable For Everyone. Past Performance Is Not Necessarily Indicative Of Future Results.