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 has been confusing for over a week. During this period Gold has been in daily ranges of 25 to 40 points, but mostly up one day down the next day in very volatile conditions.
Having trended lower for 3 weeks in October we came close to retesting the September low at 1614/13 before a huge bounce to strong resistance at 1647/52. Finally we have a tradeable pattern.
Silver beat first resistance at 1880/90 this time targeting 1925/35, perhaps as far as 1970/80 on Monday.
WTI Crude December establishes a sideways trend after reversing from below the late August high earlier this month – it is likely that the weekly ranges will decrease now & we will see lower volatility as we head towards the apex of the triangle.
Last week we held a range of 8130 – 8714 & closed the week up only 40 ticks.
Remember when support is broken it usually acts as resistance & vice-versa.
Update daily by 05:00 GMT
Gold had a series of large bodied red candles throughout October with any recoveries quickly reversed by the end of the day in a clear bear trend. However Friday’s enormous bullish engulfing candle from just above the September low signals a potential double bottom buy signal. First resistance at 1656/60. A break above 1664 is a buy signal targeting 1670/72 & second resistance at 1684/87. A high for the day likely, but shorts may be more risky now.
Holding 1656/60 can target 1650 & possibly support at 1645/42. Watch for a low for the day after the bullish engulfing candle – could be worth trying a long with stop below 1637.
Silver beat first resistance at 1880/90 this time targeting 1925/35, perhaps as far as first resistance at 1970/80 on Monday. Shorts could be risky, but if you try, stop above 1995 & then use 1980/70 as support to try to enter a long targeting 2030/35 & 2080/90.
We should have support at 1885/75.
WTI Crude December strong resistance at 8600/50 again today. Shorts need stops above 8700. A break higher this week targets 8800 & perhaps 8900/8920.
We broke first support at 8530/8480 to make a low for the day at the next target of 8340/20. A break below 8300 risks 8230/10, perhaps as far as last week’s low at 8150/30.
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Jason Sen, Director