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.
Gold rallied after the release of US GDP numbers but failed to close above the wedge at 1095 level
Lower time frame shows that price has broken below the wedge but will need confirmation of further selling
Break below the wedge, we could target 1040.60
Only a break above 1110 will we see a brief period of short covering to fill gap to 1130
Rallies to 20 ma will act as resistance and sellers should appear
On the contrary, dollar index is on resistance and the yellow metal may have some catalyst to relieve the selling
Resistance now at 1122 1138 and 1154 so watch for the 20 MA to add the extra confirmation to short
Caution end of month book squaring – could see a fail dump then spiked higher today
A feeble attempt to break higher but silver failed as more selling appears at the ned of the trading hours
We will not rule out a possible dump and pump action in the near future
The balance has shifted in favour for bargain hunters to build short term long exposure
Price action still within a downward sloping channel but key support at the rising trend line at 14.60 (break this then 13.99 is possible)
Not ruling out a retest lower to 14.25 and 13.99 for a double bottom
Daily RSI is showing sign of divergence but relief rally are selling opportunities unless we close and break above 20 ma
Price broke out of the wedge formation and continuous selling prevail – suggesting that further selling could be in the cards. Yes the RSI is heavily oversold but only if we see a strong green candles and bargain buying, then platinum remain weak. The 20 ma will continue to act as resistance and only a strong green candle can overcome the selling momentum. As mentioned in our previous report – only if we see improvement fundamentally in the global demand for automakers – expect lower platinum prices.
Once again, palladium is sold and broke below the wedge – expect further short term weakness but looking to enter a small long on a RSI rebound. Next price action could see a retest of previous low to act as a double bottom. Otherwise, a break lower to 580 is still possible. Only a close and break above the 20 ma will give rooms to test higher prices. We are watching at the weekly potential inside day pattern that should see short covering if price breaks and close above 640.