Gold: A potential new leg higher in the longer term

Jason Sen DayTradeIdeas.co.uk

Gold

Gold we have a potential new leg higher in the longer term 20 year bull trend just starting. Yesterday we hit the first new target of 2525/28, but then collapsed to 2501.
Despite this small short term correction we remain in a bull trend of course & holding above 2509/05 today allows a recovery to 2525/28.
On a break above 2533 look for 2539/43, perhaps as far as 2554/56. We could eventually reach 2565 & 2578/82. Even 2599/2602 is possible.
A break below 2500 risks a slide to a buying opportunity at 2494/91. Longs need stops below 2485.

Silver

Silver break above 2920 was another buy signal for this week targeting 2940/45 & 2970/75 which was hit yesterday as predicted before we reversed from 2996.
My first buy level is at 2920/2900 & longs need stops below 2875. Targets: 2940, 2960, 2980
A break above 3000 is a buy signal targeting 3035 & 3060.

WTI Crude OCTOBER future

Last session low & high for the October contract: 7254 - 7438.

(To compare the spread with the contract that you trade).

WTI Crude remains caught in a longer term sideways channel, around 2 years old with moving averages flatlining & converging for 6 months. For the last 11 months WTI Crude has been consolidating in a narrowing triangle pattern as the monthly ranges decrease.
It's impossible to gauge direction in this random sideways trend, but holding below; ;first resistance at 7360/7400 can target 7220/7200, perhaps as far as 7170/40. Further losses retest the August low at 7100/7088.
First resistance at 7360/7400 & shorts need stops above 7445.
Bulls need a push higher through 7490 to target resistance at 7560/90 & shorts need stops above 7640.

Author

Jason Sen

DayTradeIdeas.co.uk

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