According to Radomski, a comparison of prices of silver and palladium gives sufficient clues about weakness in gold market too. For Silver the drop below 20 day moving average is not at all encouraging for silver bulls who saw prices again falling below $21 per ounce levels.However, the breakdown in palladium prices weren't validated and it did show some positive movements in recent days and weeks.
CALIFORNIA (Bullion Street): Gold rose sharply by 4% following the US Federal Reserve's decision to continue with stimulus measures however, charts indicate a repeat of 2008 when gold and silver made several sorties upward before taking the final plunge.
In charts, therefore one should not be surprised by double top patterns, according to Przemyslaw Radomski, CFA, Founder, Editor-in-chief of Sunshine Profits.com
In a chart analysis he has pointed out that medium-term downtrend for gold is definitely in palce although the long term trend for precious metals sector as a whole is positive.
According to Radomski, a comparison of prices of silver and palladium gives sufficient clues about weakness in gold market too. For Silver the drop below 20 day moving average is not at all encouraging for silver bulls who saw prices again falling below $21 per ounce levels.However, the breakdown in palladium prices weren't validated and it did show some positive movements in recent days and weeks.
"The recent upward move in both metals was not as bullish as it seemed at first sight and the breakdown in palladium was not invalidated. The implications are still bearish and the bearish case for gold that we made in our previous essay seems to be confirmed by what we see in the silver and palladium markets. At the same time please keep in mind that the analogy to the 2008 decline is still in place and a small move higher should not surprise us (such as the one that we are seeing today). Please note that we mean only the medium term as far as the bearish outlook is concerned – we are still bullish on the entire precious metals sector over the very long term due to the positive fundamental situation," Radomski said.
courtesy of isabullion
No comments:
Post a Comment