Gold: A break above 1800 is a strong buy signal

Jason Sen DayTradeIdeas.co.uk

Gold – Silver

Gold Spot edges slowly back to very important resistance at 1787/90 & holds. Obviously this is key to direction in severely overbought conditions.

Silver Spot beat first resistance at 1806/09 hitting targets of 1821/23 & important resistance at the 1 month high at 1835/37. We topped exactly here.

Daily Analysis

Gold beat strong resistance at 1778/82 to retest & hold very important resistance at 1787/90. It is worth trying shorts with stops above 1800. A break above 1800 is a strong buy signal despite overbought conditions targeting 1812/14, 1825/27 & 1835/37.

Shorts at at 1787/90 target 1780/78 with support at 1772/70. A break lower targets 1767/65 with the best support for today at 1761/59. Longs need stops below 1755. A break below 1755 is a sell signal targeting strong support at 1746/43.

Silver first support at 1820/18 then best support for today at 1808/05. Longs need stops below 1800. A break lower targets 1787/83 then a buying opportunity at 1775/65, with stops below 1760.

We held important resistance at the 1 month high at 1835/37. Shorts need stops above 1845. A break higher is a medium term buy signal targeting 1860/63 & 1882/85.

Trends

Weekly outlook is positive.

Daily outlook is neutral.

Short Term outlook is neutral.

Author

Jason Sen

DayTradeIdeas.co.uk

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