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Gold, Crude Strong, Silver Breaks Resistance

Published 08/01/2016, 12:03 AM
Updated 07/09/2023, 06:32 AM
XAU/USD
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XAG/USD
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Gold:
Gold Daily Chart

Gold gave a great move on Friday and it looks extremely strong for the coming days as well. It is slightly extended and the moving averages are away. It may need some time to correct. We may see a small correction or a consolidation in this region. But, I would be long gold and it looks good to break year-highs very soon.

Current call: Hold longs for longer-term

Silver:
Silver Daily Chart

Silver has broken resistance in early morning trade. It is still slightly extended and I expected another day of consolidation. This is not a bad spot to go long, but it might so easily be a trap. I would wait and see what it does later in the day to go long. I would not enter it right now.

Current call: Avoid

Crude:
Crude Daily Chart

I've been wrong about crude for the majority of last week.

Crude put in a bullish candle on Friday and in early morning trade, the highs from Friday have been broken. Honestly this does not look like a bad spot to go long. Going counter-trend is always difficult where often you end up on the losing side. But at the same time it is also important to listen to the technicals. It is possible crude bottomed at 40.5 and is ready to move higher, but to say that with confidence would require patience and bullish inventory for this week.

Current call: Go long with stops below 40.5

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