Bear Rout Over? Bullion Daily

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

Chinese stock market is very much stabilising which should give short term strength in gold price

With stability in the equity market, we expect a short term surge in gold but nothing spectacular

Greece uncertainty remains and we are entering another weekend of turmoil but deal is imminent

Commodity market is heavily oversold

Gold found support at 1147 but upside kept in check within the downtrend line

Only a break and close above will allow us to take a long position to target 1182 and 1192 as a possibility

Daily Update

As mentioned previously, a break below 15.40 open the floodgate to test lower prices

Breakout on the low of 14.65 is a higher low compared to previous low of 13.99

Marked that silver has an inside day and only a break above 20 dma and 1590 will give us the confidence to swing long

Should Chinese stimulus work its magic, industrial demand should pick up

Dollar index is into resistance and forming a potential inside day

Here is another inside day pattern which could indicate a reversal is overdue. Price hit our target and downward channel line which was marked a month ago. Respecting the trend will help to discount other noises. We are on the lookout to swing long platinum if the inside day work and a close above 1140 to target the 20 DMA. Note the 20 DMA has been a strong resistance but with RSI oversold, platinum may have enough fire power to break it.

With the daily RSI showing bullish divergence and price broke below the lower Bollinger band, is a relief rally underway in this oversold market? One thing for sure, the market trend and dynamic has changed into a bearish one thus any rallies are selling opportunity. In the short term, a break above 20 DMA could allow palladium to run higher but resistance from 50 and 100 DMA will be difficult to crack.

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