Gold Holds Strong Support but Overbought Indicators Suggest Caution
Jason Sen | Apr 14, 2025 02:27AM ET
Gold
- Gold (XAU/USD) beat 3164/67 for a buy signal and shot higher to the next target of 3225/29 and more than halfway to 3255/60.
- A break above 3260 targets 3271/74 and 3280/83.
- Above 3285, look for 3300/3304.
- Over the last 16 hours, we saw 3 very negative candles on the 1-hour chart.
- Obviously, I am not taking this as a sell signal.
- Just be aware that we are overbought after such strong gains with short-term indicators suggesting we are slowing upside momentum.
- Strong support at 3220/3216. Longs need stops below 3209.
- Targets: 3230, 3238, 3242
- A break lower could test strong support at 3185/3175, and longs need stops below 3170.
- Targets: 3198, 3205, 3210.
Silver
- Silver (XAG/USD) stalled for a long time at 3120/30 for profit-taking on longs.
- It looked like we could be forming a more negative rising wedge, but we broke the upper trend line of the pattern.
- The break above 3155 was a buy signal for Friday, targeting 3200/3220, and we made a high for the day almost exactly here on Friday.
- We should have support at 3200, and longs need stops below 3180.
- A break above 3230 is a buy signal for this week, targeting 3245/50, and even 3270/75 is likely.
WTI Crude MAY Future
- Last session low and high: 5943 - 6187
(To compare the spread with the contract that you trade). - WTI Crude made a low for the day exactly at support at 5940/5900.
- As predicted, the move above 6070 on Friday was a buy signal targeting 6100 and minor resistance at 6140/6180.
- In fact, we made a high for the day at 6187.
- On a retest of support at 5940/5900, longs here need stops below 5830.
- A break above 6200 targets 6230/6240, and above here, we can retest minor resistance at 6340/80.
- Shorts need stops above 6420. A break higher can target 6550/6590 for profit-taking on longs.
- A break below 5830 WTI Crude could hit 5700/5680.
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