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29 Apr 2013
Precious metals recover some losses, finish week higher
FXstreet.com (Barcelona) - The precious metals markets finished the day lower on Friday with gold ending the day down 0.34% at 1462.20 while silver finished day down 1.51% at 24.00. However, both commodities were able to find support at lower levels gold having traded as low as 1447, and silver all the way down to 23.63. For the week, gold finished up an 3.8%, while silver added 2.87%.
According to Chris Capre of 2nd Skies Forex, “After making up some of the massive losses it took on 14 days ago, the PM ran into the key role reversal level at $1484, going one dollar past, and then forming a 4hr pin bar setup. The pair sold off heavily from this, and then took a second stab at the level, forming another long tailed pin bar, coming just shy of the level, and then falling over $25 in a couple hours, so obviously sellers were willing to defend the level for now."
He went on to add, “The shiny metal found support around $1448, so the lines are drawn short term. Bulls have to take out $1485 near term while bears have the $1448 level in sights. Physical demand has been through the roof, so this may underpin the paper prices, but the line of least resistance for the short term is still to the downside.”
Regarding the daily chart, both gold and silver were able to break and close above previous consolidation patterns which had been forming last week. This is a constructive short term development and both commodities will need display additional follow through in the coming week. Initial support in gold comes in at 1447 (April 26th low), followed by 1438 (previous resistance, now support on daily chart). First resistance comes in at 1479 (the 20dma), followed by 1510 (previous support, now resistance on daily chart). First support in Silver sits at 23.80 (previous resistance, now support on daily chart), followed by 23.52 (the 9dma). First resistance sits at 24.82 (high price from April 26th), followed by 25.11 (the 20dma).
According to Chris Capre of 2nd Skies Forex, “After making up some of the massive losses it took on 14 days ago, the PM ran into the key role reversal level at $1484, going one dollar past, and then forming a 4hr pin bar setup. The pair sold off heavily from this, and then took a second stab at the level, forming another long tailed pin bar, coming just shy of the level, and then falling over $25 in a couple hours, so obviously sellers were willing to defend the level for now."
He went on to add, “The shiny metal found support around $1448, so the lines are drawn short term. Bulls have to take out $1485 near term while bears have the $1448 level in sights. Physical demand has been through the roof, so this may underpin the paper prices, but the line of least resistance for the short term is still to the downside.”
Regarding the daily chart, both gold and silver were able to break and close above previous consolidation patterns which had been forming last week. This is a constructive short term development and both commodities will need display additional follow through in the coming week. Initial support in gold comes in at 1447 (April 26th low), followed by 1438 (previous resistance, now support on daily chart). First resistance comes in at 1479 (the 20dma), followed by 1510 (previous support, now resistance on daily chart). First support in Silver sits at 23.80 (previous resistance, now support on daily chart), followed by 23.52 (the 9dma). First resistance sits at 24.82 (high price from April 26th), followed by 25.11 (the 20dma).