Margin Calls – Bullion Daily 21st 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

Resistance now at 1122 1138 and 1154 so watch for the 20 MA to add the extra confirmation to short

Big resistance from the H & S formation stands at 1155 area

Will not rule out a retest of previous low at 1071 and even lower

Expect period of consolidation but rallies are short selling opportunities

RSI has reached oversold territory-no divergence yet on daily

Unless breakout level at 1130 heavily defended by the short then possible short covering to target 1155

Daily Update

We covered the weakness in silver and slightly amazed the selloff was not as rapid as gold (though we have one explanation that trade positioning is in play here with speculative long and shorts)

Price action still within a downward sloping channel but key support at the rising trend line at 14.60 (break this then 13.99 is possible)

Not ruling out a retest lower to 14.25 and 13.99 for a double bottom

Daily RSI is showing sign of divergence but relief rally are selling opportunities unless we close and break above 20 ma

We have an inside day with the candle piercing the lower end of the Bollinger band (possible reversal signal?)

Further weakness and sell off prevailed and price broke lower than our anticpated 962 target. We have another inside day pattern here and daily RSI has hit oversold territory but could have more rooms to go lower. We are not ruling out that platinum may retest the 2015 low as support and we are not discounting the possibility that this could be the low of the year which could be key for a relief rally. As long as the automakers see pick up in demand, stockpiling platinum at this price could be well worth it. In the short term, rallies are selling opportunity.

So we hit below 599.9 as written in our report last week. There is some bargain hunting around this price levels as the RSI continue to diverge. However, we are not ruling out a retest of low and even 578.8 dump then pump action. Unless price break and close above 20 ma then any rallies are selling opportunity.

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