Gold & Silver Daily Technical Outlook

ONG Focus - Technical Written by Oil N' Gold
Comex Gold (GC)
Gold reaches as high as 1227.5 so far and at this point, intraday bias remains on the upside for mentioned target of 61.8% projection of 1026.9 to 1196 from 1130.1 at 1233.7. Break will target medium term projection level at 1258. On the downside, below 1208 minor support will indicate that an intraday top is in place and bring pull back, probably to 4 hours 55 EMA (now at 1182.6) before staging another rise.In the bigger picture, rise from 681 is expected to develop into a set of five wave sequence with first wave completed at 1007.7, second wave triangle consolidation completed at 931.3. Rise from 931.3 is treated as the third wave and there is no indication of completion yet. Such rally is still expected to continue and target 100% projection of 681 to 1007.7 from 931.3 at 1258. We'll hold on to this bullish view as long as 1072 resistance turn supported holds.

Comex Silver (SI)
Silver retreats mildly after reaching 19.50 and intraday bias is turned neutral for the moment. While some consolidations would be seen, further rise is still in favor as long as 18.435 support holds. Nevertheless, we'll start to look for reversal signals when silver enters into 19.55/21.44 resistance zone. On the downside, break of 18.435 argue that a short term top is at least formed and will turn bias back to the downside for 17.70 support next.In the bigger picture, the break of 18.935 confirms that medium term rally is still in progress and is set to extend further to19.55/21.44 resistance zone. But after all, rise from 8.4 is treated as part of the long term, wide range, consolidation pattern that started at 21.44 back in Mar 08. Hence, upside is expected to be limited inside this 19.55/21.44 resistance zone and bring another medium term fall. On the downside, break of 16.12 will now be an important signal that silver has topped out in medium term already and will turn outlook bearish.