Gold held important resistance at 1585/87
|Gold and Silver Spot
Gold we wrote: WE MEET KEY LONGER TERM 61.8% FIBONACCI RESISTANCE AT 1585/87 IN SEVERELY OVERBOUGHT CONDITIONS. Excellent call as we reversed from 1583.
Silver we wrote: resistance at 1844/45 is key to direction today is severely overbought conditions. We topped exactly here & collapsed to strong support at 1800/1795 for profit taking on shorts.
Daily Analysis
Gold held important resistance at 1585/87 & if you were brave enough to try shorts in the bull trend, prices collapsed to 1560. Failure to beat 1585/87 trigger the slide to 1570 & minor support at 1565/64. A break below 1560 fills the gap at 1554/52. Try longs with stops below 1547. A break lower targets 1542/41, perhaps as far as support at 1537/35.
Shorts need stops above 1591. A break higher is an important longer term buy signal.
Silver hit strong support at 1800/1795 for profit taking on shorts. Longs here need stops below 1790 (it's a very small risk!). A break lower is a sell signal targeting 1775/72 then a buying opportunity at 1750/45, with stops below 1735.
Longs at 1800/1795 target 1825, perhaps as far as strong resistance at 1844/45 for profit taking. Shorts here need stops above 1850. A break higher is an important medium term buy signal despite severely overbought conditions.
Trends
Weekly outlook is positive.
Daily outlook is positive.
Short Term outlook is positive.
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