Gold: A sustained break above 1768 must be seen as the next buy signal

Jason Sen DayTradeIdeas.co.uk

Gold – Silver

Gold Spot had a 1 day consolidation phase holding the bull market high seen in May at 1762/64 & first support at 1744/42 perfectly. We wrote: we are not severely overbought & this is a strong bull trend. So shorts may actually be risky. A sustained break above 1768 must be seen as the next buy signal after the 2 month consolidation phase (very common in a bull markets)... Buy signal confirmed as we hit the first breakout target of 1773. Outlook remains positive.

Silver Spot bottomed 3 ticks above best support at 1760/50 & higher also of course, through 1760/50 to re-target 1780 & 1800/10. We topped exactly here over night but outlook remains positive.

Daily Analysis

Gold beat the bull market high seen in May at 1762/64 for the next buy signal after the 2 month consolidation phase (very common in a bull markets) targeting 1773, minor resistance at 1778/80 & perhaps as far as 1789/91 this week.

Best support at 1764/62 of course. Longs need stops below 1758. A unexpected break lower risks a retest of strong support at 1744/42. Longs need stops below 1738.

Silver bulls also back in control as we hit all targets as far as 1800/10 before the 2 week high at 1825/28, which should be seen before the weekend. A break higher tests the June high at 1836.

Buying opportunity at 1765/55, with stops below 1745. An unexpected break lower targets 1725/20.

Trends

Weekly outlook is positive.

Daily outlook is neutral.

Short Term outlook is positive.

Author

Jason Sen

DayTradeIdeas.co.uk

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens.

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