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Thursday, May 26, 2011

Trend for 26th of May 2011

Let’s come back to silver today. I indicated yesterday (and you can check it on your charts) that silver bullish triangle was finally broken and the security started going up. Today it advanced even more before collapsing during early European session. And where do you expect it to find support. I guess you know now: at previous resistance. 36.40 was resistance that was broken and silver rallied from there. It has not reached the resistance yet. It looks a little bearish now, due to the fast fall that it experienced today, but the fact that it met very strong buying at former resistance (now support) indicates that we have a lot of bulls who are willing to buy silver. I am one of them. Let us see if the support holds. 

Gbp/jpy was also in a bullish triangle that was broken yesterday too. Contrary to silver, gbp/jpy did not manage to advance upwards that well. It tells me that bulls are pretty weak at this point. However, the bullish pattern suggests that there are a lot bulls below. The pair (in the same manner as silver) came back to test previous resistance (now support) at 133.00 and is not going anywhere at the time of writing. News from US is coming in a few minutes, so I guess it might give direction for both gbp/jpy and silver. 

Eur/usd made a short term reversal and shows some technical bullishness now. You can see 123 technical reversal pattern on 4 hour chart in the pair. It also sits on former resistance, which is now support (in the same way as we saw it with silver and gbp/jpy). We do not have too much data tomorrow, so the piece of news that is coming now can set a tone for the pair as well as many other securities. Be ready to follow the market wherever it goes. 

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