Jump to content

Gold Price & Silver Technical Analysis: Nearing Big Levels




  • Gold heading into confluent resistance, intermediate and long-term.
  • Silver heading towards neckline of inverse head-and-shoulders pattern.

Gold rate: Yellow metal just shy of Rs 48,000, Silver nears Rs 72,000 - The  Economic Times


Gold price has been a ranging mess the past few months and how major confluent resistance gets treated here very soon could determine whether that continues to be the case or not. There is a trend-line running down from the August 2020 high that makes up the top of a large wedge pattern. This is in confluence with horizontal resistance running over from July.

The broader wedge is of macro interest of course, as coiling non-activity eventually leads to a sizable move. But we have been here before, where gold looked poised to start a trend only to fizzle shortly into the move.

A breakout above resistance, a clean daily (preferably weekly) close above 1834 could do the trick in getting gold rolling higher towards 1900 and beyond. While a rejection here may not set gold up to decline for an extended period of time, but more choppy price action will likely lie ahead.



gold daily chart


gold weekly chart

Gold Charts by TradingView

Silver posted a low above 23 last week, and on that it is now starting to make good on forming out the right side of an inverse head-and-shoulders pattern. A clean daily close above 24.86 will have the neckline of the pattern broken and confirmed.

Looking at the depth of the pattern, the projected target based on measured moves is up around 28. You get this by adding the depth of the pattern to the neckline. The first big test, though, will arrive at the 200-day moving average at 25.36, and declining.

But before getting ahead of ourselves, the pattern needs to first confirm. We could see a rejection that at the very least puts this idea on the backburner.


silver daily chart

Silver Chart by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

Written by Paul Robinson, Market Analyst, 9th November 2021. DailyFX


Recommended Comments

There are no comments to display.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Blog Statistics

    • Total Blogs
    • Total Entries
  • Latest Forum Topics

  • Our picks

    • Swiss Franc Firming Against US Dollar and Euro. Will Momentum Take CHF Higher?
      EUR/CHF made a 7.5-year low at the end of last month at 0.9699, moving below the previous low of 0.9804.

      Since breaking lower, the price has not managed to reclaim 0.9804 and it may continue to offer resistance. The 21-day Simple Moving Averages (SMA)is currently at that level, potentially adding resistance.

      Further up, the recent peak of 0.9957 might offer resistance ahead of the break point at 0.9973.

      In the last session, the price has crossed below the 10-day SMA and remains below the 21-, 55-, 100- and 200-day SMAs.

      A bearish triple moving average (TMA) formation requires the price to be below the short term SMA, the latter to be below the medium term SMA and the medium term SMA to be below the long term SMA. All SMAs also need to have a negative gradient.

      Looking at EUR/CHF, the criteria for a bearish TMA has been met and may indicate that bearish momentum could evolve further.

      Support might be at the recent low of 0.9699 or further down at the 161.8% Fibonacci Extension of 0.9638.


      Chart created in TradingView 


      USD/CHF has bounced off low made at the start of this month at 0.9470 to trade in a wide range of 0.9545 – 0.9650. These levels might provide support and resistance respectively.

      While the price is below all short-, medium- and long-term Simple Moving Averages (SMA), they have positive and negative gradients. This may suggest a lack of conviction for directional momentum that might see further range trading.

      Re-iterating this possibility is the price criss-crossing the 10-day SMA. Recent history has shown that when the price crosses the 10-day SMA, momentum in that direction continues. That is not the case over the last week.

      The recent low of 0.9470 may provide support ahead of the break point at 0.9460. On the topside, resistance might be at the break point of 0.9710 or the July peak of 0.9886.

       Chart created in TradingView

      Daniel McCarthy, Strategist Daily FX

      Source: Daily FX
      • 0 replies
    • Post in FTSE 📈 to drop soon
      Check out phillo's analysis on the FTSE100. Are you tracking any technical analysis for the FTSE you want to share? If so join the forum.
        • Like
    • Rolls-Royce share price: half-year results
      Rolls-Royce shares (LON: RR) sunk by 10% to 83p on Friday after half-year results spooked investors over long-running problems with supply chain issues and inflation.
      • 0 replies
  • Create New...