Technical Analysis DayTradeIdeas
Technical Analysis DayTradeIdeas
26 February
Gold XAUUSD
- * Gold continues to hit heavy selling pressure on every rally, as we established a week ago.
- * Yesterday we collapsed to support at 2904/00 but longs were stopped below 2895 before the expected bounce.
. - * The market has transitioned to a new phase of higher volatility & I think this will last a significant period of time – weeks, not days.
- * This is typical of the next phase of a reversal or topping pattern.
- * It is increasingly unlikely that Gold will reach $3000 at this stage.
- * Bears are gaining control as more supply hits the market.
. - * The bulls have certainly not given up & will continue to buy when prices drop as we saw yesterday, (but my levels were out unfortunately).
- * We can expect strong bounces even if we establish a short term bear trend.
. - * The increased volatility calls for wider stops going forward, but we will also have wider targets to compensate.
- * I will look to sell on rallies but also buy on big drops as I expect a sideways trend to develop.
. - * We should have a good sell opportunity at 2924/29.
Shorts need stops above 2938.
Targets: 2916, 2904. - * A buying opportunity at 2901/2896 & longs need stops below 2886.
Targets: 2911, 2919.
- * A break below 2885 however is a short term sell signal targeting support at 2870/65 for profit taking on shorts.
- Silver XAGUSD
- 1. Silver we wrote: Holding below 3230/40 targets 3170/60. If we continue lower look for 3135/25.
- 2. Silver made a high for the day at 3249 so shorts at 3230/40 worked perfectly on the collapse to my 2 targets of 3170/60 & 3135/25.
A low for the day exactly here in fact.
. - 3. Silver is more difficult to read as we remain in an erratic longer term sideways channel, with no clear trend or pattern to guide us.
- 4. We should meet resistance at 3220/40 but shorts need stops above 3260.
Targets: 3170/60 & 3135/25.
5. At this stage I cannot find a support where I would be willing to try a long.
WTI Crude April future.
Last session low & high: 6868 – 7126.
(To compare the spread with the contract that you trade).
WTI Crude bounced from 6980 to the target of 7080/7100, almost as far as resistance at 7140/60.
However unfortunately we made a high for the day just below at 7126, which is frustrating as prices then collapsed as expected.
The break below 6990 was a range breakout sell signal targeting 6945/25 and as far as 6900/6880 for profit taking on shorts.
Well done if you caught the second half of the move low & took profit at 6900/6880 – we saw a low for the day exactly here in fact.
We now meet 6 month ascending trend line support at 6860/6840. I am not too confident that this will hold after the break of the February consolidation yesterday.
A break below 6830 therefore could be a sell signal targeting 6775 & 6710/6700.However a bounce from trend line support at 6860/6840 can target resistance at 6960/90 for profit taking on longs.
Shorts here need stops above 7030.
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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.
Please email me if you need this report updated or Whatsapp: +66971910019 – To subscribe to this report please visit daytradeideas.co.uk or email jason@daytradeideas.co.uk
Jason Sen, Director
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