Yesterday’s daily reversal in gold and silver has prompted Citi’s FX Technicals group into a bullish position targeting $1,335 for gold in the short-term.
Via Citi FX Technicals,
Silver marginally overshot the 76.4% retracement of the rally from the trend lows in May on the log scale chart
This retracement level came in at $19.65
Additionally Silver posted a bullish daily reversal and momentum has also crossed up from stretched levels
A close above $20.50-62 would add weight to these bullish indications
Gold also posted a bullish daily reversal at the lows yesterday
The candle is somewhat similar to that seen on 15 October (although that was not a reversal day so yesterday’s price action is more aggressive)
From the 15 October interim lows, Gold rallied $110 over 10 sessions.
The same this time if seen would put gold at $1,335.
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/qN-BujYwWwg/story01.htm Tyler Durden