Trending Lower – Bullion Daily 25th 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. You can also follow us via TradingView.com for the latest charts update.

Daily Update

  • Imminent Greece deal – Gold sell off with a stronger dollar
  • Talk of Greece exiting the Eurozone increase potential of a gold sale to pay its debt
  • Downside pressure persist with several target of previous low at 1169 and 1162 levels
  • We are not ruling out the possibility to test lower Bollinger band at 1167 today and the lower trend line support at 1156 levels
  • Sellers dominate in this market and the price action seems to suggest old sellers trying to find new sellers here
  • Only a break and close above 1205 will alleviate the selling pressure
  • A break and close below 1150 then expect lower prices to advance to 1050 and 1100 levels
  • The bearish gartley remains a possibility but will be invalidated on a break below 1150
  • Lower timeframes suggest a potential Head and Shoulder pattern

Daily Update

  • Still trading within a megaphone pattern – expect further range trading here but a break lower is not being discounted
  • Price continue to trade below the 20 DMA and we cannot rule out a break lower to retest the lower Bollinger band at 15.50
  • Short term expectation is for further weakness but if sellers fail to push lower then expect a squeeze

No change in our current view on platinum price action as it indicate a short term bottom is in at 1057.7 (this took out our weekly stop) and latest price action is trading inside the big red candlestick. A break and close above 1082.8 will get us to enter a long position. Our bias has changed to semi bullish and will wait for a confirmation in the next few days or weeks.

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

Daily Resistance levels:

  • 100 dma at 1141 / 50 at 1122 and 20 at 1091

Daily Support levels:

  • Lower BB line at 1057.7

The selling continues here and we are aware that price may soon need to retrace for a MA reconnect. Without a clear signal that the selling has abated and no divergence on the RSI, then sellers will continue to drive this market lower. However, we are monitoring the daily price action which is trading with an inside day and could long Palladium at 708.20 to play the corrective rally. Bearing in mind that it has been a sellers’ market and its RSI has reached extreme oversold territory – so a retracement is overdue.  However, a break below 690.2 will see more selling pressure and target the 660 levels.

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

Daily Resistance levels:

  • 200 dma at 779 / 100 at 771 / 20 at 738 / 50 at 762

Daily Support levels:

  • 690.2
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