Gold expected to test support at 3,345/3,340 today
|Gold
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Gold lower again as expected after Wednesday's bearish engulfing candle indicated a bull trap meaning further losses are expected in to the end of the week.
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We now have resistance at 3389/93 so could see a high for the day here on any short term recovery.
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Shorts need stops above 3398.
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The break below 3373 was expected & we hit the next downside target of 3365/60 which held initially as expected.
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I'm still expecting further losses to target a buying opportunity at 3343/39 before the the end of the week.
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Longs need stops below 3333 - targets: 3357, 3365 & even 3372 looks possible.
Silver
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Silver unexpectedly collapsed from 3952 & broke back below 3915/10 so bulls have lost control & longs in the short term.
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We just made a low at the support at 3875/70.
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However I think this level will be broken at some stage today & we will continue lower towards better support at 3853/48.
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A low for the day is likely here but longs need stops below 3840.
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Targets: 3864 & 3873 for profit taking.
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Just be aware that a break below 3840 risks a slide to 3800/3790.
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