The following information is a guideline (trading plan) and should not be treated as financial advice.
Trading Instruments: Gold Trade Size: 2 contracts
|Technical Indicator||Daily Chart||Reasoning|
|Support Zones||1193 / 1183 and 1173||1193 support tested once|
|Resistance Zones||1223 / 1232 and 1244||Short term resistance zone stands at 1207 1211 area|
|RSI Indicator||49.9||Broke below 50 = bearish|
|Stochastic Fast and Slow||Fast line crossed lower = bearish|
|Bollinger Bands||1224 and 1152||Contracting BB|
|Candlesticks||Negative Close (Open 1212 Close 1201)|
|Trade Ideas||Post FOMC Dollar strength – Gold Down|
With a Hawkish FOMC minutes, dollar strengthen and gold bulls gave away their slight advantage of trading above $ 1200. Selling pressure piled on after it broke below 1207 which was support now resistance and trade below the psychological level of 1200. Between the ranges of 1186 to 1206, gold is in a rather neutral state and a break in either direction will initiate a new direction. Gapped closed and initial support was found at 1203 but eroded after a strong dollar rally. Could the next gap at 1155 be the next target?
There is a lot of work for the bull to recover and only a break above resistance level such as 1200, 1207 and 1212 will give them any slight edge to retest 1224 again. We fear that they could run out of strength and retreat until we get another set of negative US economic data.
Taking out 1189 is a start and a small short position can be initiated. Should selling continue, look to add another short on the break of 1177. Below that, we see minor support at 1167 followed then by 1155 areas where support from daily BB could ease the selling pressure.
Trading Instruments: Silver Trade Size: 2 contracts
|Technical Indicator||Daily Chart||Reasoning|
|Support Zones||16.60/16.35 and 16.09||Took out support at 16.60 and 16.35. Is 16.09 next on the cards?|
|Resistance Zones||17.00/17.35 and 17.45||Previous high/psychological 17 area/ 20,50 and 100 DMA = Bearish|
|RSI Indicator||43.89||Below 50 = Bearish|
|Stochastic Fast and Slow||Fast line crossed lower = Bearish|
|Bollinger Bands||17.51 and 15.57||Rising BB – contracting|
|Candlesticks||Negative Close (Open 16.83 Close 16.48)|
|Trade Ideas||Gap closed followed by more selling – Double top with more downside|
Double top formation has prevailed and Silver prices plunged lower under various selling pressure. Initially, prices was holding up well at 16.80 levels but selling accelerated on the lack of catalyst to push it higher. Post FOMC – dollar friendly data has added more ammunition for the bears to take it lower, breaking below previous low of 16.55 (what was support now resistance).
We are not sure if there are any bulls around for silver until the next support at 16.09 or even 15.85 levels is hit. To relieve the selling pressure, we need silver to trade back above 16.70 to neutralise the selling momentum.
However, short term recovery is a sell signal on Silver and we look to place a short position at 16.75 with a risk of 20 points at 16.95 targeting 16.09 area and 15.85.
Trading Instruments: Platinum Trade Size: 2 contracts
|Support Zones||1147/1136 and 1124||Retracement from previous low of 1086|
|Resistance Zones||1167/1186 and 1196||Previous high and Daily 50 and 100 MA|
|RSI Indicator||52.87||Lower and could retest 50 area|
|Stochastic Fast and Slow||Fast line crossed lower at 62 atm|
|Bollinger Bands||1179 and 1099||BB with limited upside – rising lower BB|
|Candlesticks||Negative close (Open 1167.6 Close 1161.70)|
|Trade Ideas||Gap close right on spot 1152.50 – where to next?|
We warned about the gravestone doji and a gap that has yet to be close. Yesterday price action seems to honour the 2 technical indications whereby selling pressure is warranted by a stronger dollar. Support at 1167 gave way and now that will act as resistance in the short term. Given that prices has moved lower, could platinum stage recovery to retest 1190? There is a potential bullish pennant and only a break below 1151 will invalidate this.
Bulls need to retake 1167 followed by 1175 and 1185 to aim for higher numbers. A buy signal is warranted if it can break and close above 1167 with stop at 1157 to target 1175 and 1185.
Current chart setup is neutral as price is holding on above the 50 DMA. Only a break below $ 1151 will turn us negative to target 1141 which is the 100 DMA at the moment. Price should hold at 1141 and if not then platinum could be in real trouble. Expect 1141 to hold and a good buying opportunity.
Trading Instruments: Palladium Trade Size: 2 contracts
|Support Zones||756/749 and 743||Both 756 and 749 tested. Can it hold now?|
|Resistance Zones||756/763 and 777||Previous high|
|RSI Indicator||45.46||Failed to go above 50 = Bearish|
|Stochastic Fast and Slow||Fast line holding on above the slow line|
|Bollinger Bands||792 and 727||Upside BB squeezed lower|
|Candlesticks||Open 767 Close 754|
|Trade Ideas||Gap not filled – Slightly bearish|
We initiated a short position as of 8th April at 767 stop 786 target 756 and 743. First target is complete and we also raised stop to break even. Daily chart is showing a bearish candlestick after it posted a gravestone doji. Our motivation in this short position is for the price to play catch up and fill the gap.
If the gap is filled this week and prices remained weak, the weekly chart will paint a strong bearish candlestick that could spell more downside. However, expect support at 738 and 725 area