Gold reached the upper target of 1761/62 and reversed from 1764 to our buying opportunity at 1726/24 and bottomed exactly here as I write overnight.
A shooting star candle in overbought conditions suggests the end of the bull market in the short term at least
Silver higher as predicted even beating our upper target of 1715/20 to hit 1754. Significant profit taking then tested 200-day moving average support at 1695/90.
Today’s Analysis
Gold longs at 1726/24 must stop below 1722. A break lower is a sell signal targeting minor support at 1718/16, perhaps as far as 1709/08 and 1704/02.
Our longs at 1726/24 target 1735/36 (hit) & possibly 1745/47 for profit taking. Gains are likely to be limited after yesterday’s negative signal, which leaves a bull trap. However, a break above 1750 allows a recovery to 1755/57.
Silver bulls must hold 200 day moving average support at 1693/90 or the outlook turns more negative for today. Stop below 1680 & reverse into shorts targeting 1665/63, perhaps as far as a buying opportunity at 1645/35, with stops below 1630.
Longs at 1693/90 target 1710/13. Above 1720 we could retest yesterday’s high at 1750/55 but further gains look unlikely.
Trends
- Weekly outlook is positive
- Daily outlook is positive
- Short Term outlook is positive