Trading Gold over today's NFP release [Video]

Jason Sen DayTradeIdeas.co.uk

Gold

Gold was weak as expected in the morning with a retest of last week's low at 3970/60

However Gold unexpectedly climbed steadily from here beating first resistance at 4005/4010 & strong resistance at 4040/4050.

We hit the next target & strong trend line & Fibonacci resistance at 4105/4115 (posted in the Telegram group). We made a high for the day exactly here.

We have ranged sideways for 7 trading days.

Shorts at strong resistance at 4105/4115 stop above 4125.

A break higher sees 4115/4105 act as support targeting 4145/4150 & even as far as strong resistance at 4155/4165 is possible. Shorts need stops above 4175.

Gold remains in a bear trend so risks remain to the downside despite yesterday's strong recovery.

There may be minor support at 4040/4030 & 4010/4000 but these are not strong enough to be worth trying longs now.

A break below 3990 should be a sell signal for today targeting 3970/65 before a retest of 3948/3942.

Just be aware that a break below here this week can target 3930/3920 then 3890/3880.

Silver

Silver also broke higher hitting my target & my sell opportunity at 6045/6075.

Shorts worked perfectly with a high for the day exactly here, dipping to 5890.

On a retest of my sell opportunity at 6045/6075 today, shorts need stops above 6120.

A break higher however is a short term buy signal targeting 6320/6340 for profit taking.

Shorts at 6045/6075 can target 5900/5890 then minor support at bear flag trend line at 5780/5750.

However longs are risky in this pattern.

A break below 5730 is a sell signal targeting 5670/5650 before a retest of the low at 5580/5555.

Further losses this week meet 4.5 month trend line support at 5465/5425.

I would not say that this is strong support and as we gain momentum to the downside longs could be risky. If you want to bet on a bounce then use a stop below 5390.

Of course a break below here then sees 5425/5465 act as a resistance targeting 5370/50 & 5320/10, probably as far as 5250/5240.

Below here look 5190/5170.

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.

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