Commodities Trading: Gold & Silver

November 16, 2015

Oh how the mighty have fallen!

XAU/USD Weekly:
151116_gold_weekly
Click on chart to see a larger view.

Gold has come along way from its 2011 bubble peak, clearly changing to a bearish trend and falling all the way back down to this area of weekly interest where we have seen some signs of ranging price action starting to form.

Although the range means that price isn’t breaking lower, the fact we are in a bearish trend makes the lack of bullish bounce much more important.

XAU/USD Daily:
151116_gold_daily
Click on chart to see a larger view.

The daily really highlights this lack of power by the bulls in Gold, with the most recent bounce only managing to form a flag back up to short term resistance before being sold off hard in a perfectly technical manner.

Gold has found short term support at its most recent swing low but all the higher time-frames are pointing to continued downside. And we haven’t even mentioned the Fed!

XAG/USD Weekly:
151116_silver_weekly
Click on chart to see a larger view.

So what about little brother, Silver?

I’ve tried to draw the same lines to highlight just how correlated the two are and even surprised myself at how closely I could line them up!

XAG/USD Daily:
151116_silver_daily
Click on chart to see a larger view.

Silver does however show a much clearer low. The fact that the shorter term daily support level lines up with the weekly level is huge for traders looking to use the zone to manage their risk around.

The fact that the Silver support zone is a lot tighter just adds to the appeal of trading this zone in Silver over Gold.

Do you see opportunity trading Commodities on MT4 with Vantage FX?

Dane Williams – @VantageFX

Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by MT4 Forex broker Vantage FX Pty Ltd, does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. The research contained in this report should not be construed as a solicitation to trade. All opinions, news, research, analyses, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently any person acting on it does so entirely at their own risk. The experts writers express their personal opinions and will not assume any responsibility whatsoever for the actions of the reader. We always aim for maximum accuracy and timeliness and MT4 for Mac Forex broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on the service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.

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