Gold: Best support at 1764/62 worked perfectly

Jason Sen DayTradeIdeas.co.uk

Gold Spot buy signal took us to 1773 & minor resistance at 1778/80 but we topped exactly here. Longs at best support at 1764/62 worked perfectly for the rest of the day offering up to 12 points profit with several bounces.

The negative candle in overbought conditions means we are likely to trade sideways to lower. However a big sell off is unlikely at this stage.

Silver Spot unexpectedly crashed from the 1800/10 target breaking strong support at 1765/55. We remain in a difficult sideways trend.

Today's Analysis

Gold best support at 1764/62 worked perfectly yesterday. Longs need stops below 1758. A unexpected break lower targets 1754/53. Further losses risk a retest of strong support at 1744/42. Longs need stops below 1738.

Longs at 1762/64 re-target 1768/69, 1773, & 1778/80. Further gains meet key resistance at 1784/86. It is worth trying shorts with stops above 1791. A break higher is a strong buy signal despite overbought conditions.

Silver we can only try to scalp the following levels for a 15 point profit with a 5 point stop loss.

1730/35, 1763/65, 1774/77, 1800/05.

Trends

Weekly outlook is positive.

Daily outlook is neutral.

Short Term outlook is positive.

Author

Jason Sen

DayTradeIdeas.co.uk

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