Gold about to breakout and retest the all time high at $3,500 [Video]

XAU/USD

• Gold remains trapped in a range but we broke above recent weekly highs in the 3365 - 3377 to retest the 4 week high at 3398.
• As we wrote yesterday: A break above 3390 could be an important buy signal but I will wait for the confirmation.
• The close above 3390 looks positive & as I wrote in my Telegram group yesterday we should have support at 3383/3379 now - longs need stops below 3375.
• Targets: 3393, 3400, 3405.
• We should meet resistance at 3420/3425 & shorts need stops above 3430.
• Targets: 3405, 3395.
• However a break above 3430 is a buy signal & longs need stops below 3415.
• Targets: 3450, 3460, 3470.
• Eventually a retest of the all time high at 3500 could be expected.
• Just be aware that a break below 3375 risks a slide to 3368/65.

XAG/USD

• Silver made a low for last week at buying opportunity at 3770/3750 and longs worked perfectly on the bounce to my target at 3825/30 for some profit taking.
• In the bull trend however we could continue higher & a break above 3845 this week suggest further gains towards 3860/65 & 3880/3885.
• These targets were achieved yesterday so well done if you managed to run the trade for over 100 ticks.
• We reached 3907, holding just short of the previous swing high in mid July at 3915.
• This leaves the possibility for a double top sell signal which is likely to trigger a move back to the strong support level 3740/35.
• longs here need stops below 3720.
• If you want to bet on a double top with a short position, place a stop above 3925.
• A break above 3925 should be a buy signal targeting 4000 & 4100.