Trade Idea 7th April 2015

Bullion Daily

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Trading Instruments:  Gold

Trade Size: 2 contracts

Technical Indicator Reasoning
Support Zones 1193 / 1183 and 1173 Based on 4 hour chart low of 1142
Resistance Zones 1223 / 1232 and 1244 Based on 100 DMA and BB
RSI Indicator 59 4 hour chart
Stochastic Fast and Slow Holding on Crossing higher
Bollinger Bands 1223 and 1193 Peeling off upper BB / lower BB moving higher
Candlesticks Gravestone doji Daily chart
Trade Ideas Short term pullback? Bulls may run out of gas after failed attempt at 1224
Fundamental Reasoning US equity and Dollar resilience
Other Factor that may Diverge

Risk Reward 2:1 on this trade otherwise it is futile and far too risky. Risk management is important here.  Short gold between $ 1213 and $ 1216 level with a stop at $ 1224 (11 points) to target the following: Close the Gap $ 1203 (10 points) & pullback to retest retracement at $ 1193 (20 points).

Trading Instruments:  Silver

Trade Size: 2 contracts

Technical Indicator Reasoning
Support Zones 16.60/16.35 and 16.09 Based on 4 hour chart low at 15.28
Resistance Zones 17.35/17.45 Previous high
RSI Indicator 47 (4 hour chart)
Stochastic Fast and Slow Broke lower Fast line crossed lower
Bollinger Bands 17.25 and 16.57 Sticking on upper BB
Candlesticks Pullback has been limited though
Trade Ideas Short term pullback? Double top on the 4 hourly
Fundamental Reasoning US equity and Dollar stronger
Other Factor that may Diverge

Risk Reward 2:1 on this trade otherwise it is futile and far too risky. Risk management is important here.  Range trading and slightly risky to short but a short scenario could play out well at $ 16.85 with stop at $ 17.25 (40 points risk) to target a b/e at $ 16.60 (25 points) and then $ 16.45 (40 points).

 

 

 

 

Trading Instruments:  Platinum

Trade Size: 2 contracts

Technical Indicator Reasoning
Support Zones 1163/1156 and 1147 Based on 4 hour chart low at 1086.20
Resistance Zones 1173 and 1186 Previous high
RSI Indicator 55 (Daily chart)
Stochastic Fast and Slow Bearish Divergence Higher high in price but not in stochastic
Bollinger Bands 1182 and 1145 Rising lower BB line
Candlesticks Bull flag
Trade Ideas Short term pullback? Double top on the 4 hourly
Fundamental Reasoning US equity and Dollar stronger
Other Factor that may Diverge

Hit resistance at $ 1186 which was also the top BB line, prices has pulled back since and found support on 4 hour 20 mvg $ 1164 with next support at $ 1147 (coinciding with rising BB at $ 1145). Risky short scenario at $ 1168 with a stop at $ 1183 (15 points) with a b/e target at $ 1151 (17 points) and then $ 1147 (21 points).

 

 

 

 

 

Trading Instruments:  Palladium

Trade Size: 2 contracts

Technical Indicator Reasoning
Support Zones 756/749 and 743 4 hour chart
Resistance Zones 777 and 782 Previous high
RSI Indicator 60 (4 hour chart) Rooms to test lower
Stochastic Fast and Slow Crossed lower Fast line has rooms to fall
Bollinger Bands 777 and 731 Bounced off the Upper BB
Candlesticks Bearish candle on the 4 hourly
Trade Ideas Short term pullback?
Fundamental Reasoning US equity and Dollar stronger
Other Factor that may Diverge Daily chart is rather bullish

Hit the upper trend line with a high at $ 777 and so a short is warranted at 771 (6 points). The short position has the potential to pull back to the lower side of the trend line at 762 (9 points) areas for BE and then target lower numbers at 756 (15 points) (retracement from previous low). Other target is to close in on the gap at $ 740 which will be bearish on Palladium.

 

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