Silver hour chart with falling wedge pattern

• Silver hour chart with falling wedge pattern.
• Above 25.86 bulls will get good upward momentum and may hit 26.50 and 27 in the short term.
• Below 24.98 things will turn negative again and bears will gain momentum.

Gold Weekly Technical Outlook

Gold jumped to new record high of 1424.3 last week but formed a short term top there and pulled back. Initial bias remains mildly on the downside this week for deeper fall. Though, strong support is expected at 1315.8 support, which is close to 38.2% retracement of 1155.6 to 1424.3 at 1321.7, and bring up trend resumption. On the upside, above 1395 minor resistance will flip intraday bias back to the upside. Further break of 1424.3 will target 161.8% projection of 1084.8 to 1266.5 from 1155.6 at 1449.6 next.

In the bigger picture, rise from 1155.6 is treated as the fifth wave of the five wave sequence from 1044.5, which should also be fifth wave of the rally from 681 (2008 low). Such rally is still expected to continue towards 161.8% projection of 931.3 to 1227.5 from 1044.5 at 1449.6 before completion. Though, we're aware of long term projection target of 100% projection of 253 to 1033.9 from 681 at 1462 and we'd anticipate strong resistance from there to bring medium term correction finally. On the downside, however, break of 1315.8 support will be an early alert of medium term reversal and will turn focus back to 1155.6 support for confirmation.

In the long term picture, rise from 681 is treated as resumption of the long term up trend from 1999 low of 253. The anticipated correction didn't happen and gold will now likely climb further to 100% projection of 253 to 1033.9 from 681 at 1462 before making a top.

Silver Weekly Technical Outlook

Silver soared to 29.34 last week but formed a short term top there and pulled back since then. Initial bias remains mildly on the downside this week for further decline to correct recent up trend. Though, strong support is expected at 24.95 cluster support (38.2% retracement of 17.735 to 29.34 at 24.907) and bring rally resumption. On the upside, decisive break of 29.34 will target 261.8 projection of 14.65 to 19.845 from 17.735 at 31.336 next.

In the bigger picture, silver's up trend is still in an acceleration phase. Current rally from 8.4 is treated as resumption of the whole rise from 2001 low of 4.01. 100% projection at 25.84 is already met. And Silver would now be targeting next key projection level at 161.8% projection of 4.01 to 21.44 from 8.4 at 36.6 level. On the downside, break of 20 psychological level is needed to signal medium term reversal. Otherwise, outlook will remain bullish.