19 October 2015

Gold Daily and Silver Weekly Charts - Retracement - J'attendrai - I Will Wait

Gold and silver were under light pressure most of the day, and slid a little in the afternoon to finish slightly lower.

The Bucket Shop was very quiet as usual, with only a little movement in the silver warehouses.

Gold bullion continues to act as though it was under lockdown.

As you know I was looking for a retracement here. The depth and shape of it will inform us on what sort of chart formation, if any, we have in play.

I have included the chart of the three scenarios and a 'worst case' below.  We are now in the 'shallow retracement' area, probably from here down to 1170ish.  The other levels are down to about 1150, and deeper down to 1130.  If gold breaks down below 1120 and sticks a solid close for a couple days at least then this formation is off the table.

Much of the commentary I am reading these days about gold and silver is junk food for the mind.  If you take in too much of it, you may become a fathead.

Have a pleasant evening.