Gold establishing a short term bear trend
|Gold
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Gold headed higher as predicted to strong resistance at 2648/52 & shorts needed stops above 2657.
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This was tricky as Gold hit 2658 on the release of the inflation data in the US.
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I hope that you managed to hold the short position!!
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Gold crashed immediately after we hit 2658 & hit 2620.
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I think we have completed the bear flag pattern & Gold will continue lower towards 2617/15 & eventually we will probably retest the November low at 2610/05.
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A break below 2602 is a sell signal targeting 2595/94 & 2580/75, perhaps as far as 2565.
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Gains are likely to be limited again today as we transition to a medium term bear market.
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I expect strong resistance again at 2648/52 & shorts needed stops above 2658.
Silver
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We wrote: Silver looks likely we will retest the November low at 2675/65.
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As I write we are testing this level as predicted.
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Unfortunately we missed the sell opportunity at 3080/90 by just 10 ticks.
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WE HAVE THE NECK LINE TO A HEAD & SHOULDERS AT 2955/45.
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This is obviously the key level for today.
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A BREAK BELOW HERE IS AN IMPORTANT MEDIUM TERM SELL SIGNAL INITIALLY TARGETING THE 200 day moving average at 2905/00.
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However just be aware that the measured target for the move is down towards the 500 day moving average at 2670/60.
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Gains are likely to be limited after the bull trap with strong resistance at 3030/40 - here shorts need stops above 3060.
WTI Crude January future
Last session low & high for the December contract: 6818 - 6937.
(To compare the spread with the contract that you trade).
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WTI Crude made a high for the day exactly at first resistance at 6940/70
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A break higher today meets the next target & resistance at 7030/60. Shorts need stops above 7090 here again today.
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Holding resistance at 6940/70 again today retests minor support at 6850/30.
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We made a low for the day almost exactly here yesterday.
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A break below 6800 suggests further losses towards 6775/55 & perhaps as far as the November low at 6680/50.
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