Gold: Sell Into Any Bounce; Silver: Try Shorts With Stops Above 1660
Jason Sen | May 18, 2018 02:00AM ET
Gold sell signal on the breakout on Tuesday so we sell into any bounce. Minor resistance at 1296/97 but the best selling opportunity is at 1302/06, with stops above 1312. However it is looking unlikely we can reach this level now.
Eventually prices are expected to continue lower and a break below 1386 targets longer term moving average support at 1278/77. This is likely to hold initially but longs are risky. Further losses target 1273/72 and trend line support at 1269/67.
Silver holding above 1635 allows a recovery to strong resistance at 1655 which we just missed yesterday by 5 (points). Try shorts with stops above 1660. A break higher targets 1670 before resistance at 1680/85.
Below 1630 risks a retest of 1617 then minor trend line support at 1600/1595. A break below 1590 is another sell signal targeting 1584/82, 1575/73 and 1562/57.
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