Yamada – Here Are The Key Levels To Watch On Gold & Silver
October 31, 2012
With gold trading near the $1,725 level, and silver firmly above $32, today King World News is pleased to share a piece of legendary technical analyst Louise Yamada’s “Technical Perspectives” report. This information is not available to the public and we are grateful to Louise for sharing her incredible work with KWN readers globally.
Metals: Gold & Silver
By Louise Yamada Technical Research Advisors, LLC (“LYA”)
October 31 (King World News) – Gold spot price (GOLDS-1,711.30) moved toward our next resistance at 1,800 before taking an expected breather (see Figure 13), and has moved below 1,750 toward 1,700-1,680 where price may stabilize above the 200-day MA. The daily momentum (not shown) is negative reflecting the consolidation underway but does not preclude further risk. The weekly momentum (not shown) remains positive but is rolling over, suggestive of a consolidation in progress unless a renewed Sell signal comes into place.
Were price to slip below 1,680-1,660 there could be further risk toward 1,600 once again with the 1,563 low representing the former and still critical support. Were the equity market to embark on a serious decline over the coming weeks / months, Gold has had a tendency also to experience selling pressure, so this should be kept in mind.
But the ability to hold support in the 1,700-1,680 range (and the 40-week MA support at 1,670), and begin to move up again, could indicate another attempt to address the formidable year-plus resistance at 1,800. A successful penetration should offer the potential to readdress the 2011 highs and move through and stretch toward 2,000, our longstanding target.