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.
A retest of the breakout line at 1158 has allowed a solid green bar
Should price close above 1158 today then there is a real chance for gold to test the green trend line
Daily RSI is trying to break higher and we will not rule out a retest of 1158 again by Monday before it test higher
If price break below the orange trend line then expect further sell off
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
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
The scenario has not changed as silver continue to trade within the downtrend channel
If the inside day play out as we anticipated, then a close above 1140 can 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? We thing a short term bottom is in place and a relief rally could unravel and target the 20 dma. 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.