Originally Posted on 1/07/2018 @ 4:49pm
Last Edited on 01/08/2018 @ 12:19pm
by Steven Warrenfeltz
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Thank you for visiting the Free-Bullion-Investment-Guide's latest blog post, before we get to the precious metals review and outlook, below are some of last week's Best Bullion Market-Related News articles that were taken from this guide's home page.
Photo above provided courtesy of pixabay.com
Before I start this week's post, I hope you and your family had a very Merry Christmas and a Safe & Happy New Year.
Yesterday morning (1/06), I was searching for a visual graphic that would best describe this week's blog post, I had come up with a few ideas but nothing concrete, then I saw an image of 'Yin and Yang.'
Immediately, I knew that image would work best, so I threw away everything else I was working on and altered the graphic to correspond with the title of this post.
Why does 'Yin and Yang' work so well? The symbol is one of the best representation of the dollar's relationship with gold and silver.
When the dollar's down, gold and silver are up, and vice versa, of course, there are some exceptions, but it's usually the case about 90% of the time.
Based on the charts below, over the next week or two, we should see a great example of this relationship as the U.S. Dollar's rebound will cause gold and silver to dip.
All the charts on this blog are Daily Charts unless noted otherwise.
Two weeks ago, I wrote the following about the U.S. Dollar and posted the chart below.
In the U.S. Dollar's chart below you can see the negative patterns or 'Dark Clouds' I was talking about in the title.
The dollar has formed two negative patterns the first is a Rising Expanding Wedge pattern and the other is a Head and Shoulders pattern.
The Head and Shoulders pattern has a question mark on the right shoulder because technically it can't be called a 'Head and Shoulders' pattern until the price breaks the neck-line.
However, the same 'Head and Shoulders' pattern looks to be forming in the dollar's MACD and RSI indicators, but first, the U.S. Dollar must break and confirm the 'Rising Expanding Wedge' before it comes close to confirming the Head and Shoulders pattern.
In the chart below, you can see that over the last two weeks both negative patterns were confirmed.
The Rising Expanding Wedge was confirmed very shortly after posting the chart above, then early last week (1/02), the dollar fell in price, and in doing so it broke the neck-line of the negative 'head and shoulders' pattern confirming it.
In the outlook chart below, you can see that the Dollar has formed a narrow 'Falling Expanding Wedge' pattern.
It is a positive pattern, but because of how narrow it is, it's hard to say how positive it will be for the dollar's future, quite honestly it could end up looking a lot like a 'dead cat bounce,' but its too early to say how the dollar will rebound after its latest fall.
Lastly, you'll notice in the dollar's MACD chart below, I've traced the bar chart with a 'black line,' this is a clear indication that a rebound should happen in the dollar's price soon.
Plus, the RSI, below the MACD, has already started to show that a rebound is due to happen to the dollar.
U.S. Dollar's Resistance Levels
U.S. Dollar's Support Levels
Two weeks ago, I didn't write much of an outlook for silver because no technical patterns had formed in its price chart.
However, its MACD and RSI were both indicating that more upward movement was possible and this was stated in the commentary, below are silver's commentary and chart outlook from two weeks ago.
For the week to come, I could not find any clear patterns in silver's chart.
However, silver's MACD and RSI are both indicating that more upward movement is possible and with the forecast for the U.S. Dollar this outcome becomes more likely, but time will tell.
As seen in the chart below, the price of silver did rise as the MACD and RSI were indicating.
As silver rose in price, the Rising Expanding Wedge in the chart below slowly started to take shape.
Now that the price of silver has moved up, it looks to be in the process of a pullback, the negative 'Rising Expanding Wedge' pattern isn't the only sign that indicates this will happen.
Another negative sign is in Silver's MACD chart below, its bar chart, like the dollar, has started to move in the opposite direction of its signal lines.
Due to all of the negatives in silver's chart, we should see a pullback in its price and the 'Rising Expanding Wedge' pattern is expected to be confirmed sometime in the next week or two.
Silver's Resistance Levels
Silver's Support Levels
Like silver, two weeks ago, I didn't give much of an outlook for gold because no clear technical patterns had formed in its chart, but like silver, its MACD and RSI were both indicating more upward movement was in its future.
Below, is what was written in the gold outlook from two weeks ago and its corresponding gold chart is below it.
For the week ahead, after studying Gold's chart, I could not identify any positive or negative technical patterns.
However, also like silver, gold's MACD and RSI are giving an indication that we should see gold move higher.
Ultimately time will tell, but if the dollar falls like the patterns in its chart indicate then we should see gold and silver move higher.
As seen in the chart below, the price of gold, like silver, rose as its MACD and RSI indicated.
Like silver, now that the price of gold has moved up with a lot of momentum, some of that momentum is starting to wane.
In addition, like silver, gold has also formed a negative 'Rising Expanding Wedge' pattern that is narrow in shape.
The narrow shape of the 'Rising Expanding Wedge' pattern found in gold and silver's price charts gives the possible indication that the two precious metals may see a limited pull back; time will tell.
The other indication that shows gold is due for a pullback is gold's MACD bar chart, like the dollar and silver's MACD has indicated, gold's bar chart has also started to change directions.
Plus, gold's RSI is also peaking in overbought territory.
Gold's Resistance Levels
Gold's Support Levels
Thank You for Your Time.
Have a Great Week and God Bless,
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