Stronger support

Gold began the week with the most anemic of bounces before continuing its decline. The yellow metal found stronger support in the vicinity of its November high, January low and Fibonacci 50% retracement level. Gold may bounce around in this area for a while before falling further.

GOLD (daily)

Upside: Fib 50% level supplying support. RSI appears to be bouncing off 30. MACD-Histogram has flattened out.

Resistance: Fib 38.2% level at about $888.

Downside: MACD still falling.

Support: Fib 50% level at about $843; 200-day MA, currently at $823.73.

Bottom line: Gold may bounce a bit and perhaps trade in a range before resuming its decline.

GOLD (weekly)

Some support is evident in the $840-$850 area. RSI, which is just below 50, has often bounced in the past from a similar level. Gold may pause for a while before resuming its decline, which could take it to its 50-week MA and Fib 61.8% retracement level, both currently just below $800.

SILVER (daily)

Upside: RSI rising. MACD-Histogram flattening out.

Resistance: Magenta line; declining 50-day MA, currently at $18.34.

Downside: MACD still falling.

Support: Rising 200-day MA, currently at $15.34.

Bottom line: Silver may bounce here and perhaps trade in a range before resuming its decline.

SILVER (weekly)

Support is evident here at the bottom rail of the channel, near the Fibonacci 50% retracement level at around $16.26. RSI, which is just below 50, has often bounced in the past from a similar level. Silver may pause for a while before resuming its decline, which could take it to its 50-week MA and Fib 61.8% retracement level, both currently near $15.

GDX (daily)

Upside: GDX bounced on Thursday from an intraday low of $41.61, the precise level of December's low, in the process making a bullish hammer-like candlestick on the highest volume in more than a month. RSI rising. MACD-Histogram starting to rise.

Resistance: Flat 200-day MA, currently at 45.93; volume-by-price bars show plenty of overhead resistance beyond that.

Downside: MACD still falling.

Support: Thursday's low at $41.61.

Bottom line: GDX likely to bounce and at least fill the gap around $44. It could possibly also retest its 200-day MA from below.

GDX (weekly)

The double bottom at $41.61 happens to coincide with the Fibonacci 61.8% retracement level, adding to its credentials as strong support.

U.S. DOLLAR INDEX (daily)

Upside: On Thursday, the index broke out of a small consolidation, and it continued to rise strongly on Friday. RSI and MACD rising steadily.

Resistance: Top rail of channel.

Downside: No clear indication.

Support: Falling 50-day MA, currently at 72.59; bottom rail of channel.

Bottom line: Dollar's rally likely to continue for a while longer.

U.S. DOLLAR INDEX (weekly)

MACD has made a bullish crossover. RSI rising strongly. Dollar is in solid rally mode.