Gold and Silver Caught in Indecision
This last week has been quite an interesting one for the metals markets. While we saw both gold and silver decline, they have actually sunk directly to Fibonacci extension targets. That said, for the first time, gold and silver have dropped below their positive divergence uptrend line in the moving average convergence-divergence indicator. That is not a good sign. Still, we saw positive divergences on the daily chart as the metals approached the lows last week.
Also interesting to note is that silver and gold may be tracing out different patterns. If we continue viewing both of these patterns as bullish, gold has traced out a potential wave (2), whereas silver seems to still be completing its larger wave 2. But the silver bullish pattern is truly on life support at present, and the prognosis for the patient is not very hopeful....364 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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