Monday, April 16, 2012

Comex Gold and Silver Commodity Levels for Tomorrow

Comex Gold (GC)

With 1717.4 resistance intact in gold, we'd continue to favor further fall in gold. Below 1672.5 will extend the decline from 1792.7 towards 1523.9 support and possibly below. On the upside, though, break of 1717.4 will indicate that fall from 1792.7 is finished and rebound from 1523.9 is set to resume.

In the bigger picture, price actions form 1923.7 high are viewed as a medium term consolidation pattern. The failure to break 1804.4 and subsequent fall argues that such consolidation pattern is not finished yet and gold might have just started another falling leg. Nonetheless, we're still expecting strong support from 1478.3/1577.4 support zone to contain downside to finish the consolidation and bring up trend resumption to another high above 1923.7 eventually. Meanwhile, break of 1717.4 will revive the case that gold has indeed bottomed at 1523.9 already and would then send gold back above 1800 psychological level.

Comex  silver 

Silver continued to stay in sideway consolidation above 31.09 and outlook remains unchanged. With 34.45 resistance intact (50% retracement o 37.475 to 31.09 at 34.28), we'd favor deeper decline in near term. On the downside, below 31.09 will affirm the bearish case and should extend the fall from 37.475 to 26.145 support and below eventually. Nonetheless, sustained trading above 34.45 will indicate that rise from 26.145 is indeed still in progress for another high above 37.475.

In the bigger picture, we're still favoring the bearish case. That is, price actions form 26.15 should merely be a consolidation pattern only and has completed with three waves to 34.78. Fall from there is tentatively treated as resumption of the medium term decline from 49.82 high and should extend through 26.145 to 61.8% retracement of 8.4 to 49.82 at 24.22 and below. Though, sustained break of 34.45 will revive the case that silver has indeed bottomed at 26.145 and open up the case for further rise through 40 psychological level.

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