Gold: Best support at 1764/62 worked perfectly
|Gold Spot buy signal took us to 1773 & minor resistance at 1778/80 but we topped exactly here. Longs at best support at 1764/62 worked perfectly for the rest of the day offering up to 12 points profit with several bounces.
The negative candle in overbought conditions means we are likely to trade sideways to lower. However a big sell off is unlikely at this stage.
Silver Spot unexpectedly crashed from the 1800/10 target breaking strong support at 1765/55. We remain in a difficult sideways trend.
Today's Analysis
Gold best support at 1764/62 worked perfectly yesterday. Longs need stops below 1758. A unexpected break lower targets 1754/53. Further losses risk a retest of strong support at 1744/42. Longs need stops below 1738.
Longs at 1762/64 re-target 1768/69, 1773, & 1778/80. Further gains meet key resistance at 1784/86. It is worth trying shorts with stops above 1791. A break higher is a strong buy signal despite overbought conditions.
Silver we can only try to scalp the following levels for a 15 point profit with a 5 point stop loss.
1730/35, 1763/65, 1774/77, 1800/05.
Trends
Weekly outlook is positive.
Daily outlook is neutral.
Short Term outlook is positive.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.