Will Gold's Price Swing Unlock Profit Opportunities?
Jason Sen | May 31, 2023 04:51AM ET
Gold shorts certainly worked perfectly on Friday with a $19 drop from the high of the day. Longs at strong support at 1938/34 worked perfectly yesterday as we held above 1930.
We wrote: ''Gold remains oversold on the daily chart so a good chance of another bounce from this strong support at 1938/34 to target 1945/47, perhaps as far as first resistance at 1952/57. Take profits on any remaining longs here if you do manage to buy at 1938/34.''
An easy profit of up to 15 points on our longs. However, shorts here were stopped above 1960. Note the bullish engulfing candle after we bounced from the 100-day moving average in severely oversold conditions.
Strong resistance at 1963/66 today. Shorts need stops above 1971. A break higher see 1966/63 act as strong support so try to reverse & buy into a long with stop below 1960, targeting 1975, perhaps as far as strong resistance at 1984/88 for profit taking.
Try shorts with stop above 1992.
Silver longs at my buying opportunity at the 38.2% Fibonacci, 100 week & 500 day moving average support at 2280/65 worked perfectly on Friday, after I gave the signal on Thursday, so there was no excuse for missing this trade!
Targets for our longs of 2315 & 2330 were both hit to add to our profits for the week.
I expect strong resistance at 2340/50 again today. Shorts need stops above 2365.
We can try longs again this week at 2280/65 with stops below 2250. However, a break below 2250 would be an important longer-term sell signal. The first target would be 2200/2190.
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