XAU (Philadelphia Gold/Silver Ratio)
XAU is an index of top thirty precious metal mining companies with heavy weightage of Bullions. Gold traces the movement of this index as it indicates the early signs of any upcoming major movement in the Security.
XAU has given a downside breakout and is likely to remain weak in the coming week as well. We can expect a dead-cat bounce in it till the neckline of 95—100 levels, any sign of weakness around that level will give another opportunity of sell on rise and it can come down to test its support level of 90 again. The major hurdle is seen at 110.
A break and close below 90 will see a continuous downside move till 86—80 levels in the coming days. The major trend has turned weak for the coming weeks.
Dow Jones Industrial Average
DJI slipped from the top and crashed by almost 4000 points. It took support from the bottom levels and bounced back sharply; now we can expect it climb till 26500—27000 levels. The major trend has turned weak, any rise in it will bring a selling opportunity in Dow Jones, so it can come down to touch its support level again. It has its support at 24500, break and close below it will see further targets of 23400—22250—21600. If the fall remains persistent, then to the extreme side DJI can come down to touch 19500—16800 levels in the coming months.
Gold took a hurdle at its major psychological resistance level of $1700 and crashed from the top. Now it has its support at 1560, if it gives a close below 1560, then we can expect a crash till $1500—$1450 levels or else it can climb up till $1620—$1630 levels again, but it will be a selling opportunity in it as the major trend has turned weak. If the fall remains persistent, then we can expect a continuous fall till $1360—$1280 in the coming months.
The major trend in Silver has turned negative. In the past week, it gave a major breakout to the downside, as shown in the chart and this fall is likely to hang in there. We can expect a minor bounce back till $16.80—$17.20, after that it will continue its negative trend and can come down to touch its support level of $16.30 again. Break and close below $16.30 will see $15.50—$14.90 levels. Every major rise in it will be another selling opportunity. The immediate hurdle is at $18.20.