Gold: Bulls need a break above 1991 for a buy signal
|Gold
Gold Spot initially topped exactly at the selling opportunity at 1970/75 for the 3rd or 4th time. This levels has offered great profits over the past week. However I did warn that this was more likely to break vent yesterday...and exactly as predicted we broke higher through 1980 for a clear buy signal.
However gains could not be sustained & we now appear to be forming a triangle consolidation pattern.
Silver Spot also moving higher of course beating last week's high at 2785/90 & 2 week highs at 2840/44 but has collapsed from 2888 leaving a short term bull trap. This also signals further sideways trading.
It is too risky at this stage to run longer term bull positions until we get a clear buy signal.
Daily Analysis
Gold likely to continue to trade sideways in the days ahead. The best support for today is at 1951/1947. Try longs with stops below 1942. A break lower is a short term sell signal targeting 1937, 1931, perhaps as far as 1 month trend line support at 1924/22. Try longs with stops below 1918.
There's very minor support at 1960 & if we bounce from here this morning we meet strong resistance at 1970/75. Shorts need stops above 1980. A break higher tests 2 week trend line resistance at 1989/91. (This is the upper trend line of the triangle). Bulls need a break above here for a buy signal targeting 1999/2001, perhaps as far as 2 week highs at 2012/14.
Silver meets minor support at 2780/75 but below here meets the best buying opportunity for today at 2725/15. Try longs with stops below 2705.
Holding minor support at 2780/75 targets 2810, perhaps as far as 2830. If we continue higher look for 2845/50, before resistance at yesterday's high of 2883/88.
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