Gold and silver stall ahead of US open
(Kitco News) - Gold has found some support at the consolidation low of $1850 per once. If this level breaks on the downside then the next major support zone is at the green line ($1788.8). This level was the resistance back in April and was pretty stubborn at the time. There is another support zone to look out for and it is the red line under the current price level which connects the wave low from 12th August and 25th September. This is not the strongest trendline in the world as it only has two touches but it cannot be ignored.
The silver chart is also looking pretty bearish. It's hard to know if this is the dead cat bounce trade or the market is consolidating after the fall during yesterday's session. If the red trendline and current wave low of $23.60 breaks then there could be more pain to come. The next major support is at the wave low from 29th October at $22.62 per ounce and beyond that, $21.81.