Dollar Showdown! Daily View 22nd May

Bullion Daily

The following information is a guideline (trading plan) and should not be treated as financial advice. Not advice but banter and active in sharing trade ideas via twitter @sugardaddyFED

Without stating the most obvious and complacent price action, buying in Asia time zone seems to indicate a dovish remark by Fed Chairman Janet Yellen. The speculative bet is in place and we sense a short term trap is in place too. What we would expect from a Friday price action is no less than whipsaw hunting stops, both long and shorts. Take caution as the herd mentality is pointing for a weaker dollar after the speech but if price action does not confirm, we could be in a lot of trouble as traders have to hold over the long weekend (mulling over their open positions) which then ensue some sort of panic correction next week.

We are not forecasting that might happen but just painting the mild possibility. Technically, gold is still range trading and only a break above 1232 will allow the bulls to resume upward momentum. We are not discounting that the pullback remains a healthy one as price is still trading above the 20 and 50 dma. Dips are still buying opportunity in the short to medium term as long as gold is trading above 1178.

Below are key levels that we will continue to monitor and this will change depending on price action.

Daily Resistance Levels:

  • Previous high at 1232.31
  • DMAs 200 at 1215.8 / 100 at 1212.46

Daily Support Levels:

  • 2% 1198.80
  • Several key DMA 50 at 1195.94 and 20 at 1201.35

Silver continue to range trade within 16.85-17.35 levels. A break lower will find support and level such as 16.40 -16.60 as a fertile area for longs to build on. On the daily, those levels hold the 50% and 61.8% Fib retracement area which should provide decent support. This also coincides with the rising orange channel line that should keep the run higher intact for now. Note the red AB – CD line could play out in the short medium time frame. On the rare chance it broke higher than a retest of previous high at 17.75 is back in play.

Below are key levels that we will continue to monitor and this will change depending on price action.

Daily Resistance Levels:

  • Previous daily high at 17.75
  • Psychological level at 18.00
  • Downtrend line that coincide with 18.00

Daily Support Levels:

  • Several key DMA levels with 200 at 16.95 / 100 at 16.65 / 20 at 16.74
  • Apr Low to May High Fib retracement level at 16.92 / 16.66 / 16.41

A very positive price action in Platinum as a retest at support level of 1144.6 has welcomed bargain hunters to drive the price higher. The test of 20 and 50 dma indicate that upside momentum is still there and sellers are not able to drive prices lower. In addition, a retest on what was previous resistance now support from the downtrend line gave further confidence that a move higher in the short term is possible. We maintain a semi-bullish outlook and would still prefer to build long if there are any pullbacks – targeting 1137.5 – 1143.5 levels.

Below are key levels that we will continue to monitor and this will change depending on price action.

Daily Resistance levels:

  • Previous daily high at 1177.1
  • 100 dma at 1176.18

Daily Support levels:

  • Several DMAs 20 at 1147 / 50 at 1144
  • Fib retracement levels 38.2% at 1155 / 50% at 1148.7

Palladium bull has certainly showed exhaustion and we are very much veered to a bearish stance. A small short position has been initiated at 780 with stops at 793.5 to target 762 and 755 support zones.

Below are key levels that we will continue to monitor and this will change depending on price action.

Daily Resistance levels:

  • Previous daily high at 801.6 and 797.6
  • 200 dma at 794.87 / 100 at 779.93 / 20 at 781.47
  • Downtrend line (see the shaded brown zone)

Daily Support levels:

  • DMAs 50 at 771.19
  • Fib retracement levels 38.2% at 771.5 / 50% at 762.3
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s