Gold and Silver Remain Bullish, Beware of Correction
22 February 2012 16:13:57 WIB
Gold
The gold price remains in an uptrend as seen on the hourly chart. However, there is a potential for a double top pattern where a break of the support at 1754.20 will be the confirmation. If the pattern confirmed, gold price likely will decline to the trendline area or support at 1745.05. A break of this support will turn the bias to bearish and the gold potentially will move to 1735.90.
On the other hand, beware of any possibility of a break of the resistance at 1759.85 for it would amplify the bullish bias and the gold possibly will rise up to the range 1765.50 – 1771.82.
Silver
Silver remains supported by a rising trendline which is seen on the hourly chart. A correction might occur to the support at 34.10 or the trendline area before continues the uptrend to re-test the resistance at 34.42. Acceleration above the resistance possibly will extend the uptrend up to the range 34.74 – 35.11.
The bias will turn to bearish to the range 33.57 – 33.05 if the trendline breaks. In that case, the bullish scenario mentioned above will fail.
