Gold Spot crashed $80 in minutes overnight. Either someone had to liquidate a large position immediately or someone in Asia sold more than they were supposed to! Gold overran key resistance at 1735/40 in the morning, but could not hold above here. Outlook negative.
Silver Spot broke the July low at 2455/45 and collapsed another 30 ticks. The bearish engulfing candle on the weekly chart signals further losses.
WTI Crude September bottomed exactly at support at the July low of 6540/20. This is now the most support important of the week.
Today’s Analysis
Gold has key resistance at 1735/40 on this bounce. Shorts need stops above 1750. A break higher targets 1756/59. Unlikely, but if we continue higher, look for resistance at 1775/76. Holding key resistance at 1735/40 targets 1730 and 1720. On further losses look for 1705/00 with the best support for this week at 1685/80. Longs need stops below 1670.
Silver also seeing a flash crash of 86 ticks on the Sunday open. Shorts at key resistance at 2395/2405 worked perfectly as we topped exactly here. Shorts need stops above 2410. A break higher targets 2440/50. Unlikely, but if we continue higher look for strong resistance at 2487/94. Shorts need stops above 2500. Holding key resistance at 2395/2405 targets 2350/40. If we continue lower look for 2310/00.
WTI Crude September sees important support at the July low of 6540/20. Minor resistance at 6680/6700. Further gains meets a sell opportunity at 6785/6820. Shorts need stops above 6850. Longs need stops below 6480. A break lower is a medium term sell signal initially targeting 64020/00 then 6330/10.
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