Gold breaking below 1200 was our sell signal targeting 1190, 1188/87, 1180, 1172/71, 1166/65. All have been hit.
This more than makes up for the losses on the failed long positions above 1200. We bottomed overnight at 1160 and have now seen a strong recovery. This looks like a short term capitulation as longs panic. If we can hold above 1171/70 we can see a further recovery to resistance at 1177/78. Bulls then need a break above 1181 to target 1184/85 and strong resistance at 1188/90. Try shorts with stops above 1195.
A break below 1157/56 targets 1150/49 and 1145.
Silver shorts worked perfectly from below 1510 with a 75 point profit as we hit 1430. We have stabilized and while there is no buy signal we are of course severely oversold. The bounce is likely to target 1457/59 but expect resistance at 1475/77. Watch for a high for the day. However above 1480 allows a recovery to towards 1490/91 before a selling opportunity at 1500/04. Try shorts with stops above 1512.