Gold and Silver soar on weak data [Video]
|XAU/USD
Gold finally beat resistance at 2335/40 mid last week for our buy signal & then a downward revision to the May NFP number, higher than expected unemployment & lower average earnings sent Gold higher on expectations of a rate cut, as predicted.
The break above 2371 was our buy signal on Friday targeting 2377/79 & 2384/86 for profit taking before the weekend.
Prices reached as far as 2392 by the close. A great trade if you were quick enough to catch it.
Although overbought in the short term, I think further gains are likely at the start of this week. A break above 2395 is the next buy signal targeting 2405/07 & perhaps as far as 2422/25.
I would be a buyer if we see any weakness on Monday but the only support I can identify is quite a long way down at 2371/68. Longs need stops below 2364.
Targets: 2377, 2384, 2390.
XAG/USD
Silver I said was forming a bull flag, meaning eventually we will break higher for a buy signal. That has happened last week & beating 3015 helped that buy signal & we shot higher to 3080/85 on Friday, then beating 3090 for another buy signal.
My targets were 3105/10 & 3130/35, even 3150/55 I said was possible.
Silver rocketed to 3148, so we only missed my 3rd target by 2 ticks.
A great trade if you were quick enough to jump in on the buy signal.
Now that we have broken higher & completed the bull flag pattern, I expect the downside to be limited & I expect to see further gains this week.
First support at 3085/75 & longs need stops below 3065.
A break above 3155 is the buy signal for this week targeting 3175 & 3200/10, perhaps as far as 3230.
WTI Crude August future
Last session low & high for the AUGUST contract: 8302 - 8452.
WTI Crude August has traded sideways for 3 days & we have 2 candles with long upper wicks, suggesting there is profit taking around 8430/50.
Again we meet minor support at 8270/40 which could hold the downside again today. Longs need stops below 8225.
A break below 8225 is a sell signal targeting 8160.
A break above 8450 is the next buy signal targeting 8490 & 8520.
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