Roller Coaster – Daily View 2nd June

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

What a Monday, as price action in all metals was seemingly positive for a while with New York open and buying it up to $ 1205 and prices look to anchor above 1200 for the next up leg. Alas, the close was a disappointing long wick as sellers came back hard and returned price to where it opened. Initial momentum came from a weaker dollar but it caught bid after the release of a better US ISM manufacturing PMI data.

Sellers continue to dominate in this market and in the short term it could look like some sort of support are building up at 1180 or it could also look like the end of the bull reign. We will look for dips to enter long but will be very cautious with a tight stop and taking profit at key resistance area. At the same time, we will not rule out a break lower to revisit 1155 levels. Murmur of a Head & Shoulder is a potential play on gold and we will continue to monitor.

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 1212 / 100 at 1210 / 50 at 1198 and 20 at 1199
  • Previous high at 1204

Daily Support Levels:

  • Previous low at 1180.20
  • May low 1170.30

Somehow the low at 16.53 is holding up pretty well and buyers are building support at 16.60 – 16.70 levels. We highlighted 2 yellow boxes just for amusement but should it play out exactly the same again then Silver could very well top at the upper Bollinger Band which currently resides at 17.64 levels.

The lower Bollinger band is rising – giving bulls some sort of comfort. Buying the dip and levels in between 16.60 – 16.80 seems to warrant a potential run up. We will be cautious and watch how price action reacts and will not hesitate to change side if necessary. Meanwhile, we look to buy dips since Silver has not made a lower low on the daily.

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
  • 200 ma at 16.86, 100 ma at 16.67, 20 ma at 16.86
  • Upper BB line at 17.64

Daily Support Levels:

  • DMA levels 50 at 16.60
  • Previous low at 16.53
  • Fib retracement level 38.2% at 16.40
  • Lower BB at 16.02 (watch BB rising and Converging)

As mentioned in our previous commentary, previous low at 1107.8 is not the low and we now have 1100.1 registered. Weakness in Platinum is by far the worse out of all the metals and the damage done on the chart is suggesting more weakness to come forth unless we see a strong green close. Platinum is reaching an oversold territory but with no pullback, it could very well indicate a potential short covering momentum to push it higher.

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 1168 / 50 at 1144 and 20 at 1136

Daily Support levels:

  • Previous low at 1100.1
  • Lower BB line at 1097
  • March low at 1086.5

Sellers remain in control here and a retest of 771.5 could well be underway.” That target was hit and we remain short on Palladium. We will not rule out a pullback to test the 20 DMA at 782 or the 100 DMA at 778 which should create a lower high and lower low again. As long as this range continues, we will look to short at peak with tight stop and buy on the dip within the range. Only a break above 801 will give the bulls the confidence to test higher prices. Current price action is dominated by sellers. We aware that price is range trading in this wedge and a breakout on either side will determine the next direction.

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 791 / 100 at 778 / 20 at 782
  • Downtrend line (see the shaded brown zone)

Daily Support levels:

  • DMAs 50 at 772
  • 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