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||Lower high and higher low|
|Resistance Zones||1209 / 1213 and 1224||Failure to break 1209 for the 3rd time|
|Stochastic Fast and Slow||No man’s land|
|Bollinger Bands||1214 and 1186||Looming Breakout|
|Candlesticks||Positive Close (Open 1196 Close 1201)|
|Trade Ideas||Range trading|
In No Man’s Land or LOST is befitting the current XAU/USD market. Lack of interest from market players continues to besiege price action in this tight range. As we mentioned a couple of weeks ago, there is a potential breakout in the horizon but no one knows exactly the direction of this break. Early morning, we are seeing further US dollar weakness that did not transpire into higher prices. Sell off in the equity market has not helped either – the catalysts for higher prices at the moment is safe haven buying.
Given that all the economic and geo-political risks have been priced in, gold bulls may soon run out of luck should price break out of the lower range. Gold continue to trade in the range of $ 1177 and $ 1224 – with anything between that as range trading.
Watch for several US data coming out this afternoon with Existing home sales, New Home Sales on Thursday and the all-important Durable Goods Orders this coming Friday which may set the next direction. Our weekly trading view also includes our long term take on gold trades as follows: – https://gbulliontimes.wordpress.com/
Trading Instruments: Silver Trade Size: 2 contracts
|Technical Indicator||Daily Chart||Reasoning|
|Support Zones||15.72 and 15.56||78.60 at 15.72 will be last defence. Price trading below previous support now resistance.|
|Resistance Zones||16.20/16.56/16.60 and 17.45||Need 16.60 for a move higher|
|Stochastic Fast and Slow||Hovering at the lower level|
|Bollinger Bands||17.19 and 15.82||Lower BB moved lower – bearish|
|Candlesticks||Positive Close (Open 15.95 Close 16.01)|
|Trade Ideas||Heading to test support at 15.89, 15.72 and 15.56?|
Silver continue to trade below what was previously support now resistance level and current price action suggest further weakness could prevail. To neutralise this weakness, Silver need to trade above 16.60 followed by the daily 200 MA at 16.73 before any reversal trend could be set in place. Only a break and close above 17.45 will give bulls the opportunity to ride the market higher.
Meanwhile, bears are still in full control and have the opportunity to test 15.72 and 15.56 where we can find some good support. Only a break below 15.12 will damage the weekly and monthly trend line.
Meanwhile, Silver could retrace higher but subject to further selling should dollar bulls gain buying momentum again. We will not rule out a retest of $ 15.72 and $ 15.56 for good support. Enter a long at $ 15.60 with a 25 point stop loss to target $ 16.40 offers a great RR (reward at 80 points).
Trading Instruments: Platinum Trade Size: 2 contracts
|Support Zones||1147/1136 and 1124||Tested 1147 with 1136 tested too. 1124 next?|
|Resistance Zones||1155/1186 and 1196||Failed to break above 1186 – Bearish|
|RSI Indicator||49.57||Broke below 50 – bearish|
|Stochastic Fast and Slow||Bearish Divergence continues|
|Bollinger Bands||1176 and 1128||Stabilising|
|Candlesticks||Negative close (Open 1148.4 Close 1147.9)|
|Trade Ideas||Indicators suggest selling pressure|
The sell-off has accelerated and we cannot rule out further weakness to retest the lower Bollinger Band at 1128. That level will coincide well with 61.8% retracement 1124 of previous high made on April 2015. The Stochastic indicator continues to flash bearish divergence and recent price action has trade outside the trend line. With RSI falling below 50 and the MACD line about to cross lower, we continue to be in the bear camp.
We have trimmed one of our short position at 1158 (stop raised to Break Even) and let the last contract run to target 1136 (reward 22 points).
Trading Instruments: Palladium Trade Size: 2 contracts
|Support Zones||746/754 and 761||Low hit at 762.00 and rebounding|
|Resistance Zones||758/778 and 785||Took out all on Monday but gave it all back|
|RSI Indicator||49.60||Waiting for further bearish confirmation|
|Stochastic Fast and Slow||Rolling over to bearish zone|
|Bollinger Bands||790 and 729||BB stabilising|
|Candlesticks||Positive close (Open 774.1 Close 770.6)|
|Trade Ideas||Gap not filled and IHS Failed again.|
Palladium need to take out 762 and 752 to suggest further weakness to fill the gap at 740 followed by the lower end of the Bollinger band at 730. We would like to remind our readers that Palladium could consolidate for now but we are wary of a bearish RSI divergence on the 4 hourly chart. Such indication warrants us to short the metal on any corrective rallies to target 766, 752 and 740 again. Potential H&S formation on the 4 hour chart cannot be rule out! For today, we are looking for a corrective pullback higher to warrant a short position.