Gold ready to trade higher today
XAU/USD
Gold made a high for the day exactly at resistance at 3330/3335 & traded down to 3322 but there was only this 100 tick profit offered on shorts.
I think we will break higher today - so a break above 3337 is a buy signal targeting resistance at 3350/3355.
A high for the day is possible but shorts need stops above 3360.
However if we do hold resistance at 3330/3335, targets are 3322 & 3313.
If we continue lower look for a retest of 3305/00.
Failure to hold 3300 on the downside today means we are likely to target 3285/3280, perhaps as far as 3265/60.
XAG/USD
Silver still holding strong support at 3795/3785 and made a low for the day exactly here for the 2nd day, just as I predicted.
We hit the first target of 3830 and I think there is a good chance that Silver could resume the longer term bull trend... It could be worth holding onto these long positions for a few days (or even longer).
There is a good chance of a low for the day again today & even for the short term correction here.
Longs need stops below 3765.
Targets: 3830, 3850.
Although we will probably stall around 3850 I definitely would not sell into short positions because I think eventually we will break above 3855 for a buy signal targeting the 3900/3920 area.
Just be aware that an unexpected break below 3765 can target 3700/3690.
Author
Jason Sen
DayTradeIdeas.co.uk
