Daily chart shows Gold finding short term trend line support, but within a down trend channel, so any surprises are likely to occur to the downside in the short term, unless/until we see an upside break from the channel.
Weekly shows overhead trend line resistance with the market trending lower. Risk is to the downside in the medium term, so long as any rallies are capped below 1400.
Tuesday, 10 June 2014
The following weekly chart provides two measured targets for Silver's continuing down trend. One based on the current position of the down trend channel target line, is a touch below 15.00. Another based on the measured target from the descending triangle is around 13.60. More important than either target is to understand that the trend is down, and that the risk is to the downside. Only a move above the 2011 and 2012 lows around 26.40 would begin to challenge the down trend.
Weekly chart below shows that the ASX 200 is nearing 7 years of bear market, and is currently squeezed between trend line resistance and support. Keep an eye on both the US S&P 500 and Japanese Nikkei, both big influences on this market, both within long term bearish patterns, and both currently positioned so that they could (could) be near to big moves lower.
The Japanese Nikkei is nearing 25 years of bear market. For 23 years it has been channeling lower, and looks to be once again turning lower within that same down trend channel.