The Yellen Effect – 15th 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

Hedge Fund continue to hold high amount of short orders

Not ruling out a retest of 1146, 1142 and 1130 – possible long with tight stop

Break below 1130 then 1100 is the target

If break and close above 1163, price could test 20 ma followed by 50 ma

20 ma is resistance where sellers could add with tight stops otherwise the 50 ma that could coincide with the 50% fib at 1175 levels

Daily Update

Weakness as long as price trade below 20 ma

Not ruling out a retest lower at 15.12 and 14.65

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

Risk reward may have swing in favour of going long than further selling in the oversold market

Despite a stronger than expected Chinese GDP numbers, Platinum continue to trade within a symmetrical triangle pattern (see 4 hour) and a breakout is imminent. We envisaged a potential false break lower and reverse in the oversold market. The catalyst could come from priced in bad news and oversold market that needs a relief rally. 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.

20 ma is the first tough resistance that Palladium buyers need to face and only a close and break above it will give buyers more confidence to test higher. Only a break and close above the 20 ma will allow us to target at least the 50% fib retracement of 715.3.

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