Gold selling a break below 1820

Jason Sen DayTradeIdeas.co.uk

Gold – Silver

Gold Spot held resistance at 1834/35 & collapsed again to strong support at 1800/1795 for profit taking. We bottomed exactly here.

Silver Spot we wrote: gains are likely to be limited with first resistance at 23.55/65...Be ready to sell a break below 2320 for 2305/00 & strong support at 2290/80 for profit taking.

We topped just 4 ticks below first resistance at 23.55/65 & sold off to 2291.

Daiy Analysis

Gold selling a break below 1820 worked for a test of strong support at 1800/1795 for profit taking. Longs need stops below 1790. A break lower is an important sell signa initially targeting 1775/72 & 1763/60.

We are very oversold as we test support at the 200 day moving average at 1800/1795. Very brave bulls can try longs targeting 1811/13 & resistance at 1821/24. Above 1827 signals further gains to 1830, perhaps as far as 1837/40 for profit taking on all remaining longs.

Silver shorts working well this week as we hit strong support at 2290/80 for profit taking. & bottomed exactly here. Obviously this is key to direction in oversold conditions. A break below the October low at 2256 is the next sell signal initially targeting 2210/00.

Brave longs at strong support at 2290/80 target 2320/22 & 2335/40. Further gains meet a selling opportunity at 2360/70 with stops above 2380.

Chart

Author

Jason Sen

DayTradeIdeas.co.uk

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