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
