Gold spot we wrote: outlook negative and holding first resistance at 1715/17 re-targets 1707/05 then 1700/1698. A good chance of further losses eventually to very important strong support at 1685/75.
What a call! gold collapsed straight to very important strong support at 1685/75 and bottomed exactly here.
This was perfect! The break below hit 1705 and even the bounce topped exactly at 1715/17. Outlook now negative.
Silver spot we wrote: breaks support at the 200 day moving average at 2485/75 which turns the outlook more negative & risks a retest of last week’s spike low at 2445/40. A break below here can target 2415/10, perhaps as far as 2370/60.
Another great call as we hit 2380 this morning.
Today’s Analysis
Gold tests and holds very important strong support at 1685/75. A bounce from here leaves a bullish double bottom pattern which is likely to trigger gains to 1690/95, perhaps as far as 1700/05 today. These are only minor resistance levels. If we continue higher, perhaps later in the week look for 1710/12, perhaps as far as are 1717/19.
A break below 1672 however is likely to trigger further losses to the 200 day moving average at 1660/57. This is the last line of defence for bulls. A break below 1653 could trigger significant losses in to next week.
Silver breaks support at the 200 day moving average at 2485/75 to hit targets 2415/10 as far as 2370/60. A break below 2350 risks a slide to 2300/2290.
Gains are likely to be limited with first resistance at 2335/45. 2nd resistance at 2470/80.
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