Gold spot volatility is decreasing in the consolidation phase

Jason Sen DayTradeIdeas.co.uk

Gold – Silver

Gold Spot volatility is decreasing in the consolidation phase, seeing hourly ranges of only about 5-10 points on average. Yesterday's range was only 16 points.

Silver Spot trades in a 2 month channel from 2320/10 up to 2600/10.

Daily Analysis

Gold meets strong resistance at 1896/1899. A break above 1901 however targets 1907/08, perhaps as far as 1916/18,. Further gains meet resistance at 1921/23.

Shorts at 1896/1899 target 1886/84 & minor support at 1879/75 (& we bottomed exactly here yesterday). If we continue lower look for 1868/66, perhaps as far as 1860/58 & 1855. A break below support at the September low at 1848/47 is a sell signal initially targeting 1835.

Silver topped exactly at minor resistance at 2480/90 but above here retests yesterday's high at 2805. A break higher targets 2517/19, perhaps as far as resistance at 2530/33.

Best support at 2535/25 being test over night. Longs need stops below 2515. A break lower is a sell signal targeting 2390/85 & perhaps as far as last week's low at 2360/55.

Chart

Author

Jason Sen

DayTradeIdeas.co.uk

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