Gold and Silver Technicals and Trendz 2nd March 2011 From Chiefs World

8/7/2019 Gold and Silver Technicals and Trendz 2nd March 2011 From Chiefs World

1/11

GOLD AND SILVER TECHNICALS AND TRENDZ 2nd

MARCH 2011

FROM CHIEFSWORLD

DISCLAIMER : CHARTS AND OPINION EXPRESSED HERE IS ONLY FOR EDUCATION AND NOT FORTRADING , CHIEFSWORLD WILL NOT BE RESPONSIBLE FOR ANY OF YOUR ACTION


2/11

Comex gold futures prices Tuesday closed sharply higher and at a fresh all-timerecord high close of $1,431.20 an ounce, basis April futures. Meantime, Comex

silver futures hit a fresh 31-year high Tuesday. The precious metals are seeingsupport from bullish technicals and continued safe-haven investment demand fromongoing tensions in the Middle East. A weakening U.S. dollar index is also anunderlying bullish factor for the metals. Comex April gold last traded up $21.50 anounce at $1,431.40. Spot gold last traded up $19.80 at $1,431.50.

The precious metals markets remain in a fully bullish technical and fundamentalposture. Fundamentally, the specter of inflationary price pressures worldwide isgaining more attention. Federal Reserve Chairman Ben Bernanke spoke to theSenate Tuesday on U.S. monetary policy. His remarks did nothing to assuage

investor concerns about inflationary price pressures. Traders know the Fed is stillleaning toward a very accommodative monetary stance, which does augur for moreinflation in the coming months. Commodity prices in general are at multi-year highs,while the central banks of the major industrial economies have implementedquantitative easing the past 12 months. Those are two key components forinflationary price pressures.

The civil unrest in the Middle East today saw a development when it was reportedthat Iranians were protesting in the streets. Also, the situation in Libya is still tense.Crude oil futures prices surged by over $2.50 a barrel on that news, which was alsoa positive factor for the precious metals market bulls. The overall Middle Eastsituation and its uncertainty are still inviting safe-haven investment demand into theprecious metals markets. Any major flare-up in the Middle East would now likelypush gold sharply higher.

The U.S. dollar index hit another fresh four-month low overnight. The index didrebound from its low Tuesday, but the technical posture of the index remains weak . Ifthe dollar index continues to trade sideways to lower, which is what the technical picture is suggesting at present, thenthat would continue to be gold-market-bullish


3/11

Last weeks low was right at the lower red mini uptrend line. As long as price isabove the dotted trend line ---- the short term trend is up.

very short term action suggest we'll move higher for now, but must remainabove 1410.

if PoG[PRICE OF GOLD] reaches 1450, the max dip thereafter should only be3%, or 1406. Then the remainder of March should be much higher, 1500+ very

possible.

The 1450 target should be very soon, inside a couple days. A full wave (v)extention to 1515-1530 would likely carry into next week


4/11

As long as price is above the upper dotted trend line------ favor higher.


5/11

On a long term weekly basis (below) the 21st Century Gold Bull market remainsfirmly intact at the moment. The February low so far was right at the key channellines and made a low the week of the Chinese New year ---- exactly 52 weeks from

the 2010 low at the same time.

The medium term trend remains up and price remains within the Upper GreenChannel line. The Long Term Breakout Price point is the upper red line and aslong as price is above that area ----- the price breakout is intact.

Gold remains above key support. As long as price is above this area ---- themedium trend is up.


6/11

Silver is approaching the upper momentum line where next resistance is the34.75-35.08 . As i said 10 days back keep stop loss of 32.5 for short term for allyour long position


7/11

The daily chart using the SILVER ETF (SLV) shows another higher line exists thatwe have dubbed the Pre Shortage Panic Line. This area targets the 37-38 dollararea in Spot Silver. As long as price is above the breakout line --- the potential toaccelerate remains in place.


8/11

Crude could go ballistic this week, bullish above 96.80 (WTI). If by

chance crude slips below 96.80, no worries as a back test of the break-

out ($92-94) may be seen then it's off to the races. Crude would run into

serious technical bearish problems if it falls and closes below $91 at this

point.


9/11

The HUI gold bugs stock index chart shows the important lows that were set inearly Feb was at the bottom of a longer term trend line. As long as price is above520 the trend is up. NOTE THAT THE GOLDS ARE GOING UP WHILE OTHERSTOCKS ARE GOING DOWN ---- HAVE THE GOLD STOCKS FINALLY DETACHEDFROM THE STOCK MARKET ? IF YES --- then the NEXT LEG of gold might beunder way.


10/11

The US Dollar and the long term down trend. Pirce remains below the 34 weekmoving averages and the US Dollar remains in trouble. A move below the 76 areawould add pressure to the downside. SENTIMENT READINGS SHOW BEARS AT93%


11/11

Euro Mar 1 2011

The Euro reached the lower support line and a bounce back up is underway. Aslong as price is above 134 -- the trend is up. Note how the EURO is close toBREAKING OUT to the UPSIDE as price coils in between the uptrend anddowntrend lines. This is the area to watch.

Gold and Silver Technicals and Trendz 2nd March 2011 From Chiefs World

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