Thursday 28 March 2013

Metals still weak

Whilst the equity indexes continue to melt higher, the precious metals are still weak, and this was despite the US dollar actually declining today. Silver was especially weak, and came rather close to taking out the Wednesday low. A minor rebound was seen in the afternoon.


GLD, daily



SLV, daily


Summary

Another rather rough day for those on the bullish side in the metals market. The rather notable aspect was the persistent weakness in both Gold and Silver, despite the USD actually falling.


Bull flag?

GLD is offering a small bull flag (blue) on the daily chart. I've added an equivalent one for SLV, but the latter looks pretty bad, not least with it being below key resistance.

Considering the weekly charts (see below), I have to believe the metals will at least get an opportunity to challenge the declining resistance - that has kept a lid on the metals since the highs at the announcement of QE3 last September.


GLD, weekly


SLV, weekly.


Underlying MACD (blue bar histogram) is still negative cycle, but IS trying to recover back to the important zero line.

Metal bulls really need SLV back in the 28s, and GLD back in the 156s  Considering the price action in the past few days, its going to difficult, but not impossible. The hourly charts offer considering potential for upside across Monday, and perhaps also Tuesday. Yet for now, it remains just that...potential.

How we open..and trade Monday morning will again be critical.