Let's look at the commodities today.
Daily chart of Gold (XAU):
The gold price has been on a upward trend along the green line for some time, and obviously 50-day Simple Moving Average was helping to support the price as well.
The short term down-trend line in red, starting from the high in April 2011, acts as a resistant to the gold price, stopping it from moving any further.
Currently, gold price is testing the red resistant again. Breaking out would mean going even above the previous high in April 1576.
MACD and its EMA are touching each other, having the possibility of bullish cross. But it depends on further movement of Gold.
On other hand, support is at around 1527 (the green line). These are the levels to be aware of.
Daily chart of Silver (XAG):
Chart of silver looks more lousy. Same as gold, there is a long-term up-trend line (in green) which has been supporting Silver for more than a year.
After the big slump in April 2011, it looks like a flag shape has developed (red and green lines). This isn't a good sign as this signals continuation of bearish trend.
Resistance level is at around 36.2 and 35 is the next support. If it breaks down, I would expect the price reaching 30. If it breaks out, it could be back to 40 and consolidate.
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