Gold Spot beat 1756/59 to hit the next target and resistance at 1774/76. Although shorts did not stop above 1780, there was no profit in the trade as we closed at 1779. Outlook is more positive after the strong hammer candle on the weekly chart.
Silver Spot hit the 2310/00 target for a potential 100 tick profit on the week and we bottomed exactly here. On Friday we unexpectedly shot higher to hold 10 ticks from key resistance at 2395/2405.
WTI crude September shorts at first resistance at 6960/90 worked perfectly on the slide to the target and minor support at 6800/6780 for up to 200 ticks profit.
Today’s Analysis
Gold outlook is positive and holding above 1775 targets 1780 then 1787/88 and minor resistance at 1792/94. A high for the day is possible here, so it could be a good area for profit taking on longs, but shorts are too risky. A break above 1796 signals further gains to 1800/1805. A break below 1770, however, is more negative for today and risks a slide to support at 1759/56. Longs need stops below 1751.
Silver holding key resistance at 2395/2405 on Monday re-targets 2350/40 then 2310/00. A break below here this week targets 2260/50. Key resistance again at 2395/2405. Shorts need stops above 2415. A break higher is a buy signal initially targeting 2440/50. We could pause here but eventually we should continue higher towards strong resistance at 2487/94 for profit taking on longs. Shorts need stops above 2505.
WTI Crude September shorts at first resistance at 6960/90 work as we hit the target and minor support at 6800/6780. Longs are probably too risky. A break lower this week targets 6700/6680, perhaps as far as 6600/6590. Important support at the July low of 6540/20. Longs need stops below 6480. A break lower is a medium term sell signal initially targeting 6420/00 then 6330/10.
Holding minor support at 6800/6780 allows a recovery to 6870/6900. First resistance at 6960/90. Shorts need stops above 7020. A break higher targets 7090/7110, perhaps as far as 7150/70.
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