Gold outlook negative: Gains are likely to be limited with first resistance at 1778/80
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Gold Spot hit the target of 1766/64 but not quite as far as 1758/56.
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Silver we wrote: breaks strong support for a sell signal - holding below 2290/2300 is an important sell signal initially targeting 2230 & 2200.
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We missed the 2200 target by only 15 ticks so far.
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WTI Crude January broke important support at 6460/30 but bounced from 6243.
Daily analysis
Gold outlook negative & so gains are likely to be limited with first resistance at 1778/80. Strong resistance at 1786/89. Shorts need stops above 1792.
Shorts at 1778/80 target 1773/71 before a retest of 1763/61. A break lower eventually is likely, targeting 1758/56 & 1752/50.
Silver holding below 2290/2300 was an important sell signal initially targeting 2230 & 2200. We are almost there. Further losses are expected eventually to 2160/50.
Gains are likely to be limited with minor resistance at 2245/55 (a high for the day here yesterday in fact) then strong resistance at 2285/95.
WTI Crude January first resistance at 6765/85. Shorts need stops above 6840. A break higher targets 6930/50, perhaps as far as strong resistance at 6990/7120. Shorts need stops above 7170.
Shorts at 6765/85 target 6570/50 then 6460/40. Further losses retest 6260/40 although I do not see this as strong support. Further losses can target 6200/6174 & 5970/30.
Author
Jason Sen
DayTradeIdeas.co.uk
Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens.
