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 retest low at 1150.99 but rebound has been weak
Hedge Fund continue to hold high amount of short orders
Not ruling out a retest of 1146, 1142 and 1130
If break and close above 1163, price could test 20 ma followed by 50 ma
Commodity market is heavily oversold
Break below 1130 then 1100 is the target
Silver failed to close above the 20 ma and has since retraced lower
Minor support at 1530 levels but will not rule out a retest lower
Weakness as long as price trade below 20 ma
Marked that silver has an inside day and only a break above 20 dma and 1590 will give us the confidence to swing long
The scenario has not changed as silver continue to trade within the downtrend channel
Price continue to trade within the inside day candle created on 8th July. 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. The risk reward has certainly swing in favour of building long positions. Chinese GDP numbers will shed some light into the next price action. A strong growth number could potentially help platinum to test higher.
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.