Precious Metal Trade Idea – 17th April

Bullion Daily

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 Gold made several good key supports
Resistance Zones 1213 and 1224 Bullish move taking out 1200 and 1206
RSI Indicator 52.56 Neutral
Stochastic Fast and Slow Neutral zone although fast line ticked higher
Bollinger Bands 1214 and 1184 Looming Breakout – rising BB
Candlesticks Negative Close (Open 1204 Close 1199)
Trade Ideas Neutral

 

Relentless US dollar weakness whipsawed XAU/USD prices creating a converging triangle with higher low and lower high. A breakout on a Friday is ideal – as most traders like to call it Friday madness to Mind F. everyone during the weekend.

Frenzied selling across European equities also lead to some safe haven buying but then it recedes after the release of US CPI numbers. Despite 5 Fed members resonating a June rate hike or sometime this year, the dollar bull take no interest. Short covering against the USD went rampant.

Afraid, we will stick to similar commentary on how prices on the yellow metal will play out. Break of 1224 could complete a potential IHS while a break below 1176 will target a potential new low. See our weekly analysis for orders placed – https://gbulliontimes.wordpress.com/category/precious-metal-weekly-review/

 

Trading Instruments:  Silver                                                                                         Trade Size: 2 contracts

Technical Indicator Daily Chart Reasoning
Support Zones 16.09 and 15.72 61.8% retracement at 16.08 is providing much better support.
Resistance Zones 16.56/16.60 and 17.45 Need 16.60 for a move higher
RSI Indicator 46 Bearish
Stochastic Fast and Slow Fast line broke higher – stalling?
Bollinger Bands 17.24 and 16.06 Lower BB moved lower – bearish?
Candlesticks Negative Close (Open 16.37 Close 16.29)
Trade Ideas Consolidation period before breakout?

 

This morning silver price action was rather positive, hitting a high of 16.52 but then retraced lower. Similar to gold, Silver benefited with weaker US dollars but contained in its bearish formation. The indicators are not giving a huge confidence for a trade in any direction. The support at 16.08 proves solid for now but we continue to expect choppier price action and only a clean break of $ 16.00 or $ 16.90 will confirm our next take.

 

Trading Instruments:  Platinum                                                                                  Trade Size: 2 contracts

Technical Indicator Reasoning
Support Zones 1147/1136 and 1124 Trading in an uptrend line atm
Resistance Zones 1155/1186 and 1196 Retake of 1186?
RSI Indicator 52.66 More legs to the upside?
Stochastic Fast and Slow Bearish Divergence
Bollinger Bands 1176 and 1127 Converging
Candlesticks Negative close (Open 1162.5 Close 1159)
Trade Ideas Indicators suggest selling pressure

 

Platinum 4 hour chart is showing a triangle pattern with lower high and higher low. A potential breakout of this range is looming.  Should we see price break above 1175.50 then a small long can be initiated with a potential target at 1192.3 while a break below 1137 will confirm a more bearish view on the metal to test lower numbers 1111 and 1086 are under threat.

 

Trading Instruments:  Palladium                                                                                Trade Size: 2 contracts

Technical Indicator Reasoning
Support Zones 746/754 and 761 Uptrend to continue after retest of 754
Resistance Zones 758/778 and 785 20/50 and 100 DMAs
RSI Indicator 54.8 Back to Bullish frame or just lagged
Stochastic Fast and Slow Fast line reclaimed above slow line
Bollinger Bands 788 and 729 Neutral
Candlesticks Positive close (Open 770 Close 777)
Trade Ideas Gap not filled and IHS back in play?

 

Palladium once again posted a positive close and made a bullish engulfing candlestick. Often, this particular metal has its own set of rules and trading it has not been an easy task. Palladium often lags and plays a delayed price action, with that in mind we would prefer to wait until a clear signal is available. However, we will not rule out that it is semi bullish as prices are trading above 20 DMA and may target the upper BB.

Despite that, we remain sceptical on the run up and could look at opportunities to short it.

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