Gold is trending lower – A break below 1910 is a sell signal [Video]
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Gold Spot we wrote: collapsed from the all time high leaving significant double top risk with a moderately negative candle on the weekly chart now. With a weekly close almost unchanged, a shooting star candle has formed, which warns the bull run has ended, increasing risks to the downside.
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Gold now breaks support at 1958/54 for another sell signal.
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Silver breaks the head & shoulders neckline at 2540/20 but holds very short term support at 2505/00, so a break below here today is a sell signal targeting 2400/2380.
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WTI Crude April I warned of a significant bull trap, which risks further losses this week.
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The break of important support at 104.80/30 is our next negative signal targeting 101.00/100.50 & 9930/9900.
Today's analysis
Gold now trending lower as we clearly warned yesterday. The break of support at 1958/54 is a short term sell signal targeting 1950/48, perhaps as far as 1942/40 today. In fact we could eventually fall as far as 1925/20 for a buying opportunity this week, stop below 1910. A break lower is the next sell signal.
Gains are likely to be limited with minor resistance at 1955/58. If we continue higher expect strong resistance at 1975/78.
Silver break of head & shoulders neckline at 2540/20 yesterday is a sell signal. A break below 2490 is today's sell signal targeting 2460/40 then strong support at 2400/2380. Longs need stops below 2360.
Bulls are in trouble now after the unexpected reversal on Wednesday. Gains are likely to be limited to 2525/35. Shorts need stops above 2545.
WTI Crude April broke important support at 104.80/30 to target 101.00/100.50 & 9930/9900. I would not be surprised to see a test of strong support at 9750/9650, even today. Longs need stops below 9550.
Gains are likely to be limited with first resistance at 104.40/80. Shorts need stops above 105.40.
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