Market Commentary
April gold posted a key reversal down due to profit taking on Tuesday as it consolidated some of the rally off December’s low. The low-range close sets the stage for a steady to lower opening when Wednesday’s night session begins trading.Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If April extends the rally off December’s low, December’s high crossing at 1266.70 is the next upside target.Closes below the 20-day moving average crossing at 1227.50 would confirm that a short-term top has been posted. First resistance is today’s high crossing at 1262.20. Second resistance is December’s high crossing at 1266.70. First support is the 20-day moving average crossing at 1227.50. Second support is December’s low crossing at 1182.30.
March silver closed lower on Tuesday while extending the trading range of the past two months. The low-range close set
the stage for a steady to lower opening when Wednesday’s night session begins trading. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near-term. Closes below the 20-day moving average crossing at 19.901 are needed to confirm that a short-term top has been posted. Closes above December’s high crossing at 20.480 are needed to confirm an upside breakout of December’s trading range. First resistance is December’s high crossing at 20.480.Second resistance is the reaction high crossing at 20.920. First support is the reaction low crossing at 19.310. Second support is December’s low crossing at 18.720.
Source:RSBL