Gold: Key support at 1894

Jason Sen DayTradeIdeas.co.uk

Gold – Silver

Gold Spot crashed 36 points from quite strong resistance at 1920/22, in about an hour. Yesterday we recovered 75% of the fall! This is a crazy market to trade at the moment. We wrote: Holding short term trend line support at 1890/88 should be positive for today in short term oversold conditions. A bounce targets 1899/1900 with first resistance at 1904/09.

We over ran by just 3 points, but shorts here worked eventually on the slide to 1892/91.

Silver Spot unexpectedly wiped out all of Friday's strong gains with just a small bounce yesterday.

Daily Analysis

Gold key support at 1894/92 today. A bounce targets first resistance at 1899/1904. We should struggle here. 2nd resistance at 1910/12. A break higher meets strong resistance at 1918/22.

Longs at 1894/92 need stops below yesterday's low at 1889. A break lower is a sell signal targeting 1886 & this week's low at 1883/82. Be ready to sell a break below to test last week's low at 1873/72 with strong support 100 day moving average support at 1870/68. Longs need stops below 1865. A break below here is a medium term sell signal.

Silver has collapsed through first support at 2460/50 targeting 2415/10 with support at 2370/50. A break lower targets 2310/00.

Minor resistance at 2440/50 but above here targets 2475/85 & 2520/25.

Chart

Author

Jason Sen

DayTradeIdeas.co.uk

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