Gold and Silver Are Making Attempts to Rally

GOLD (XAUUSD)
Dominant Bias: Bearish
In the context of a downtrend, Gold is making attempts to rally. The attempts have not really ruled out the bearish bias, except the price goes above the resistance level at 1270.00. A close above that level would mean the beginning of a new bullish trend; but as long as the price is under the resistance level, it could be concluded that the rally attempt in the market is a futile effort. The support level at 1240.53 would serve as a long-term barrier to the bears’ machination. The market has found a bottom at that support level and it would be difficult for the price to break that level to the downside. It is possible for the market to go down again (especially if it fails to reach the aforementioned resistance level), but the down move may be halted at the support level of 1240.50.

SILVER (XAGUSD)
Dominant Bias: Bearish
Silver is also trying to rally in the context of a downtrend. The attempt is more significant than that of Gold, for the price only needs to close above the resistance level at 19.2000, for a Bullish Confirmation Pattern to be established. At the time of writing this piece, the price was at 19.0600. Therefore, it would be easier for the price to close above the aforementioned resistance level, especially when the bulls make more desperate attempt to push the price further upwards. Should this expectation fail, the price would continue to be bearish.

Source: Tallinex.com

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