Gold and Silver Market Commentary For Monday Evening Sept. 19th

The gold bulls have to be disappointed with today’s market action even though the longer term trend for gold remains positive. We still believe that the $1,750 area is important support for spot gold. Providing that our monthly and weekly Trade Triangles remain intact, we want to approach this market from the long side.

The Williams % R is once again in an oversold condition. The $1,840 level is resistance for gold at the moment. Support comes in around the $1,775 and extends all the way down to $1,750. Intermediate and long term traders should maintain long positions with the appropriate money management stops in place.

December gold closed lower on Monday as it consolidates below the 20 day moving average. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If December extends this month's decline, the reaction low crossing at 1705.40 is the next downside target. If December renews this year's rally into uncharted territory, upside target are hard to project. First resistance is this month's high crossing at 1920.70. First support is last Friday's low crossing at 1765.40. Second support is the reaction low crossing at 1705.40.

Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Negative
Combined Strength of Trend Score = + 55

The spot silver market is currently in an oversold condition. Our intermediate weekly Trade Triangle turned negative today at $39.29, indicating that intermediate term traders should be on the sidelines at the moment. With spot silver in an oversold condition and at the lower range of the Donchian trading channel, we expect to see some support coming into this market.

Cyclically, we are close to a low cycle and would not be surprised to see a market bounce in the next several days. We want to continue to monitor this market over the next few days looking for an area to add to long positions. Long term traders should maintain long positions in this market with appropriate stops. Intermediate term traders should now be on the sidelines waiting for either a buy, or sell signal based on our Trade Triangle technology.

December silver closed lower on Monday as it extended last week's breakout below the July-August uptrend line crossing near 40.864. The mid range close set the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term. If December extends this month's decline, the reaction low crossing at 38.810 is the next downside target.

Closes above the 20 day moving average crossing at 41.238 would temper the near term bearish outlook. First resistance is the 20 day moving average crossing at 41.238. Second resistance is this month's high crossing at 43.500. First support is the reaction low crossing at 38.810. Second support is August's low crossing at 37.055.

Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short Term Trends = Negative
Combined Strength of Trend Score = – 70


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