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Gold, Silver Consolidating, Crude Weak

Published 08/02/2016, 02:19 AM
Updated 07/09/2023, 06:32 AM
XAU/USD
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XAG/USD
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GC
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SI
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CL
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Gold
Gold Daily Chart

Gold had a very quiet trading session. As suggested yesterday, it is amid consolidation and may take some time before moving higher. We may also see a minor correction towards 1340. But, for the longer term, I'd continue to be long gold.

Current call: Hold longs

Silver
Silver Daily Chart

Silver broke resistance but is slightly extended on the Moving Averages. It needs some time to consolidate and it has firmly established a resistance in the 20.6-20.7 area. Currently I do not see a trade and would stay away till it sets up better. It could be a couple of days of choppiness for silver.

Current call: Avoid

Crude
Crude Oil Daily Chart

I got crude wrong again yesterday. That is why I say that trying to catch bottoms is very difficult. I usually take only 10-20% of my trade size when I try to catch bottoms since it's a low probability trade and fails more often.

My best guess for crude at this spot would be that it bounces off support near the 38-39 area. There is some strong support there. Crude has fallen more than 20% from year highs and a reversal from here definitely seems likely. I will be keeping a close eye when it gets to 38-39.

Current call: Buy near 38-39 for a reversal

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