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Gold, Silver Annihilated; Crude Sets Up For Reversal

Published 08/07/2016, 12:30 PM
Updated 07/09/2023, 06:32 AM
XAU/USD
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Gold
Gold Daily Chart

Gold, which was looking incredibly strong all this while, got absolutely crushed post the Nonfarm Payrolls data. The chances of a rate hike are extremely high and I'm almost betting on it to happen over the next two Fed meetings. Gold is likely to go down further if that happens. I'd watch Gold closely and avoid taking a position till it shows some direction.

Current call: Avoid

Silver
Silver Daily Chart

Silver, like gold, crashed hard too. I definitely expect it to go even lower towards 18-18.2 area. The Nonfarm data was not kind on precious metals and a strong dollar puts added pressure. Silver was looking set to break year-highs but was annihilated by the positive numbers. It closed at lows and showed signs of further weakness. Being long silver right now looks dangerous.

Current call: Short for a target of 18.2

Crude
Crude Oil Daily Chart

Crude currently has a great looking chart. It had a King-Queen reversal with 3 consecutive days of higher highs and higher lows. It put in an absolutely amazing candle to go long. It's right in front of resistance with the Moving Averages crossing the tail of the candle.

This looks like an absolute no-brainer to me to go long once it breaks day highs at 42.09.

​Current call: Long above 42 area

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