Wednesday, 1 June 2011

Silver and Gold upwards correction update

Corrective trend channels from the weekend post are still in place.

Silver hourly candlestick chart for the period since the late April peak. The market has stayed below last week's throw over high of 38.86, and is now trading below the 40 hour moving average, a sign of weakness.

Gold. The market has not reached the top line of the larger upwards corrective trend channel. Ideally it would meet or exceed that line, which may yet happen, but the bearish cross of the 18 and 40 hour moving averages marks the birth of a new down trend at this time frame. A move lower through the nearby up trend line would likely signal that the whole corrective pattern had completed, and that the larger trend had turned back down. 

GBP hourly chart trend turns down

AUD/USD hourly

The hourly candlestick chart shows that the AUD/USD has turned lower from resistance, and is establishing a down trend at this time frame. A move below the daily low at 1.0643 would add confidence to the bearish view. A rise above resistance would see the market trending upward possibly for a re-test of the early May high, just above 1.10.