G7 bans Russian gold - Technicals unchanged
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Featuring views and opinions written by market professionals, not staff journalists.
Gold found resistance around its 200-day moving average yet again in overnight trading, continuing the squeeze between it and the major support line we've been highlighting. We let the price action guide us. But to speculate on the possible effect of the import ban on the longer-term prospects for gold, perhaps the trendline that has supported gold over the past year just received re-enforcement. Again, each time bulls have held the line in the timeframe, a pop above the 200-day moving average has manifested.
The picture for silver seems constructive. It is finding support around its 200-week moving average, as suggested last week, with the weekly stochastics looking to cycle back into the overbought position. Should silver successfully form a bottom at this level, a trade aimed at the $25.50 level comes into probability.
Thanks and have a great week,