Sell Signals Generated on Gold and Silver

GOLD (XAUUSD)
Dominant Bias: Bearish
Gold experienced a massive sell-off last week, which rendered the recent bullish bias completely invalid in the market. The market has been very volatile since then, with short-lived victories that are alternated between the bull and the bear. In this kind of market, a wide stop is recommended; plus the most probable direction is southward. Only a movement above the supply level at 1324.00 could make the probability of the bearish direction useless. Meanwhile, the price may reach the demand level at 1293.00. After all, that demand level was tested during the massive sell-off that happened last week.

SILVER (XAGUSD)
Dominant Bias: Bearish
There is a Bearish Confirmation Pattern in this market, which was brought about as a result of the strong weakness that happened last week. It is known that Gold and Silver are highly correlated (positive correlation), and any discrepancy in the direction would create a profitable trading opportunity, especially the one that causes transitory negative correlation. Right now, it is most likely that this commodity would continue its weakness, but the volatility in the market must be taken into consideration. Sellers may want to take some profit at the support level of 20.3300, for this may be an area where the price would bounce upwards significantly.

Source: Tallinex.com

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