Monthly Technical Reviews for Gold and Silver (August 2015)

GOLD (XAUUSD)
Dominant bias: Bearish
Gold fell over 8,000 points last month, testing the support level at 1084.90 before experiencing a pause in the bearish momentum on July 24th and starting to move sideways for the rest of the month. The bias for this market remains bearish, so when a breakout does occur, it is more likely to be to the downside. That means the support levels at 1075.00, 1065.00 and 1050.00 could well be tested this month. However, if price breaks upwards then the resistance levels at 1115.50 and 1125.50 should halt attempts to rally further, but any movement above those levels will jeopardise - possibly end - the bearish bias.

SILVER (XAGUSD)
Dominant bias: Bearish
Just like Gold, Silver also trended downwards in July. However, price has been ranging for the last two weeks – suggesting that a significant breakout is imminent. When it occurs, it should be to the downside (favoring the extant bias), and making price test the accumulation territories at 14.3100 and 13.5000. Should price manage to rally above the distribution territories at 15.2000 and 16.5000 then it could result in a Bullish Confirmation Pattern - thereby rendering the bearish outlook invalid.

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