Daily Technical Analysis is provided by Jason Sen of Day Trade Ideas, who has been day trading since the late 1980’s. Jason has been a contributor of Traders Summit since the beginning. He primarily focuses on providing technical analysis of the financial markets, including stock chart patterns, Forex and Metals setups, and other useful technical analysis.
Gold Spot we wrote: collapsed from the all time high leaving significant double top risk with a moderately negative candle on the weekly chart now. With a weekly close almost unchanged, a shooting star candle has formed, which warns the bull run has ended, increasing risks to the downside.
GOLD NOW BREAKS SUPPORT AT 1958/54 FOR ANOTHER SELL SIGNAL.
Silver breaks the head & shoulders neckline at 2540/20 but holds very short term support at 2505/00, so a break below here today is a sell signal targeting 2400/2380.
WTI Crude April I warned of a significant bull trap, which risks further losses this week.
The break of important support at 104.80/30 is our next negative signal targeting 101.00/100.50 & 9930/9900.
Update daily by 05:00 GMT
(I will update if we move beyond the levels in the report).
Gold now trending lower as we clearly warned yesterday. The break of support at 1958/54 is a short term sell signal targeting 1950/48, perhaps as far as 1942/40 today. In fact we could eventually fall as far as 1925/20 for a buying opportunity this week, stop below 1910. A break lower is the next sell signal.
Gains are likely to be limited with minor resistance at 1955/58. If we continue higher expect strong resistance at 1975/78.
Silver break of head & shoulders neckline at 2540/20 yesterday is a sell signal. A break below 2490 is today’s sell signal targeting 2460/40 then strong support at 2400/2380. Longs need stops below 2360.
Bulls are in trouble now after the unexpected reversal on Wednesday. Gains are likely to be limited to 2525/35. Shorts need stops above 2545.
WTI Crude April broke important support at 104.80/30 to target 101.00/100.50 & 9930/9900. I would not be surprised to see a test of strong support at 9750/9650, even today. Longs need stops below 9550.
Gains are likely to be limited with first resistance at 104.40/80. Shorts need stops above 105.40.
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Jason Sen, Director