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.
With No vote, gold spiked but hit strong resistance at 1175
Greece uncertainty has raise concern about contagion effect on the other peripheral countries (PIIGS)
Safe haven buying on the dollar index and yen outweigh on the metals by far
Zerohedge cover a story about banks cornering the precious metal market
The dollar index has broken higher and this add bearish pressure on gold
Hedge funds are holding all time high short positions
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
Break below 1150 will escalate further selling
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
Silver is on the verge of a breakout but need a serious green candle to break out of the downward channel
A close above the 20 dma is the signal to take a swing long position
Lower time frame confirmed the bear flag and the daily 20 ma continue to act as a strong resistance. Platinum has broken below previous support and with sellers in control, we are not ruling out a retest towards the red channel line before we see any meaninful support. With that in mind, any rallies to 20 dma is a sell signal.
The pullback was indeed another opportunity to short palladium as the rallies fizzled. The RSI continue to stay within oversold region and we may have a double bottom (will need a confirmation of a W formation). Should price hit the lower channel line and RSI shows bullish divergence, we could take a swing long with tight stops.