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Yamada - Gold & Silver at Critical Points in This Cycle
With gold trading near the $1,640 level and silver around $30, today King World News is pleased to share with readers a piece of legendary technical analyst Louise Yamada’s “Technical Perspectives” report. This information is not available to the public and we are grateful to Louise for sharing her incredible work with KWN readers globally.
Metals: Gold -- Consolidating; Silver -- Indecisive
By Louise Yamada Technical Research Advisors, LLC ("LYA")
May 4 (King World News) - Gold spot price (see Figure 15) maintained a sideways drift over the month at the 2008 uptrend line holding above critical support at 1,600-1,563 (December 2011 low). The weekly momentum model is still declining after having renewed a negative Sell signal progression following a brief 2012 Buy, but appears to be slowing the downward slope, and needs to turn up, as occurred in 2008 (see horizontal arrow) to confirm an upward reversal.
Gold appears to be trying to stabilize and barring a break of 1,600 continues in the wide trading range consolidation between 1,600 and 1,800. A lift through the MAs at 1,710 could indicate another test of 1,800. A break of 1,600 and the uptrend line would suggest further risk toward 1,500 or lower.
Silver spot price barely moved over the month, until last week. Price has been unable to surmount the MAs, the downtrend and resistance at 35, following the false breakout (see Figure 16, circle, left chart). Price briefly broke down and without a strong bounce could return toward the 2008 uptrend now near 27, but also could revert down toward the lower channel line and critical support near 25. The weekly momentum has minimally turned negative again (see Figure 16, right chart), and the monthly momentum remains negative (not shown), suggesting the potential for a sustained rally at this time may be low. With both these momentum models negative, on Sell signals, the risk profile rises.
As Managing Director and Head of Technical Research for Smith Barney, Louise was a perennial leader in the Institutional Investor poll, and was the top-ranked market technician in 2001, 2002, 2003 and 2004, before going independent. To subscribe to Louise Yamada Technical Research Advisors, LLC ("LYA") CLICK HERE.
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
May 4, 2012
