Line in the sand – Bullion Daily 02nd July

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

The dollar index is coming to resistance but cannot rule out a breakout higher

Pre NFP often have gold bulls running to the hills but

Sellers could continue to drive market lower but the longer it takes then a potential short squeeze is due

A retest at 1150 – 1160 cannot be rule out here but look to swing long with tight stop

Upside remain capped and only a break above 1200 will help alleviate the selling pressure

AB = CD could target 1133 but the magenta rising line could stand in as support at 1152 levels

Daily Update

A break below 15.40 and Silver could head lower

As long as price managed to find support above 15.40 then it could have a corrective rally

Short term expectation is for further weakness but if sellers fail to push lower then expect a squeeze

Post NFP will set the overall direction

Today we want to highlight the lower time frame that we mentioned yesterday and that bear flay is playing out thus we expect another rout lower to retest previous low. A double bottom support is the short term line in the sand and only a close below will allow the bears to take prices lower.

The short term low at 663.70 is holding on and the bounce could mark a corrective rally. Above 4 hourly charts could play an inverse head and shoulder pattern with a potential target of 737 which is shy of previous support now resistance (red line). Mind you, the weekly RSI is oversold and it is attempting to rise a tad higher. We remain cautious on the outlook on Palladium and this pullback could be another opportunity to short.

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