XAG/USD: Silver bulls must hold 1693

Jason Sen DayTradeIdeas.co.uk

Gold _ Silver

Gold & Silver Spot

Gold reached the upper target of 1761/62 & reversed from 1764 to our buying opportunity at 1726/24 & bottomed exactly here as I write over night.

A shooting star candle in overbought conditions suggests the end of the bull market in the short term at least.

Silver higher as predicted even beating our upper target of 1715/20 to hit 1754. Significant profit taking then tested 200 day moving average support at 1695/90.

Daily Analysis

Gold longs at 1726/24 must stop below 1722. A break lower is a sell signal targeting minor support at 1718/16, perhaps as far as 1709/08 & 1704/02.

Our longs at 1726/24 target 1735/36 (hit) & possibly 1745/47 for profit taking. Gains are likely to be limited after yesterday’s negative signal, which leaves a bull trap. However a break above 1750 allows a recovery to 1755/57.

Silver bulls must hold 200 day moving average support at 1693/90 or the outlook turns more negative for today. Stop below 1680 & reverse in to s shorts targeting 1665/63, perhaps as far as a buying opportunity at 1645/35, with stops below 1630.

Longs at 1693/90 target 1710/13. Above 1720 we could retest yesterday’s high at 1750/55 but further gains look unlikely.

Trends

Weekly outlook is positive

Daily outlook is positive

Short Term outlook is positive

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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