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.
Author
Jason Sen
DayTradeIdeas.co.uk
