Gold: We could be looking at a significant bull trap
|Gold _ Silver
Gold Spot I am still concerned we have hit a short term in severely overbought conditions as we hold important trend line resistance. We bottomed exactly at the best support at 1761/58 & topped exactly at strong resistance at 1778/82. Shorts need stops above 1800.
Silver Spot sideways but again, risks could be to the downside.
Daily Analysis
Gold outlook turns neutral/negative. We could be looking at a significant bull trap. Bears will want prices back below 1770/73 at the start of the week, targeting 1767/65 with the best support for today at 1761/58. Longs are risky. A break below 1755 is a sell signal targeting strong support at 1746/43.
Holding 1773/70 retests strong resistance at 1778/82. Gains are likely to be limited after the sell signal but of course we have very important resistance at 1787/90. It is worth trying shorts with stops above 1800. A weekly close above 1800 is a strong buy signal despite overbought conditions targeting 1812/14, 1825/27 & 1835/37.
Silver less bearish daily candle but outlook is neutral/negative. Watch first support at 1786/83 & first resistance at 1806/09. Gains are likely to be limited but a break higher targets 1821/23 before important resistance at the 1 month high at 1835/37. Shorts need stops above 1845. A break higher is a medium term buy signal.
A break below 1780 targets 1770/68, perhaps as far as 1759/56. We could even reach 1752/50.
Trends
Weekly outlook is positive.
Daily outlook is neutral.
Short Term outlook is neutral.
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