Currency Wars – Bullion Daily 11th Aug

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

We have gold rocketed as high as 1119.79 but no follow through buying has brought the market down

Today close is crucial and if gold can mount a close above 20 daily ma then it may stand a chance to test higher

The dollar whipsawed after Yuan devaluation has given several opportunities for traders to add short positions

Dollar index remain resiliently strong – meanwhile gold is considered oversold and money flow here is no surprise

Severe equity sell off may have lifted the metals today but close is key now

Daily Update

As mentioned previously – we warned of a potential move higher in silver

A potential double bottom in the making at 14.37 levels and the daily RSI has a bullish divergence

Despite a strong dollar, we do not see any major sell off in Silver – a potential turn here?

A break and close above the 20 ma will give us the signal to take a long position

The balance has shifted in favour for bargain hunters to build short term long exposure

Any pullback on Silver remains a buy and as long as it trade above the daily 20 ma

Look to add on pullback to 14.78 (an area to retest the down trend line)

Weekly

Daily

A rather positive response on platinum as it trade and close above the 20 daily ma. We highlighted the weekly chart as well just to show the possibility of a fractal at play. We could see that the 2014 price action may well repeat itself after a massive sell off – and for the next few months, we could expect range trading as platinum look to retest the lower end of this box several times before ending the year with a potential move to 1070. Time will tell on this trade and with Yuan devaluation and extra stimulus taking effect, the probability could well be high.

The daily RSI continue to diverge while price action is stuck between 6586 – 625 levels. Today price action does not bode well for Palladium as it tested higher but gave back most of its gain. A period of consolidation could be healthy for the market before retesting higher. One positive note is that the selling seems to have abated and price did broke out of the downward channel.

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