Monthly Technical Reviews on Gold and Silver (October 2014)

GOLD (XAUUSD)
Dominant Bias: Bearish
This market became bearish in July 2014, and since then the price has dived by over 1300 points. The bias is still very bearish – characterized by great volatility in the market. This shows that there is a serious struggle between the bull and the bear. The price has tested the support level at 1206.00, and with more weakness in the market, the price may breach the support level to the downside, going towards another support levels at 1205.00 and 1204.00 respectively. The bull – though currently fighting a losing battle – may eventually succeed in pushing the price upwards towards the resistance levels at 1235.00. Should the price rally above that resistance level, it may be a serious threat to the bearish outlook.

SILVER (XAGUSD)
Dominant Bias: Bearish
Since July 2014, Silver has dropped by over 4000 points, going downwards with magnanimous alacrity and reaching as low as the demand zone at 17.3000. This sustained trending movement shows the wonderful advantage of running one’s winner and truncating one’s negativity. It also shows that in a strong trend like this, short-term counter-trend movements invariably proffer new opportunities to join the trend at bargain prices. Further movement to the south may cause the aforementioned demand zone to be breached to the downside, allowing the bear to target another demand zone at 17.0000. However, it ought to be repeated that there is a high possibility of a strong rally around the months of November/December 2014.

Source: Tallinex.com

Learn from the Generals of the Markets: Market Generals

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Mark Austin

• 

  Capital.com

• 

  Faraday Research

• 

  Envion