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Gold: Break Below $1902 Can Target $1893/90

Published 01/16/2023, 01:01 AM
Updated 07/09/2023, 06:31 AM
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  • Gold broke through resistance at 1878/88 and cleared 1895 for a buy signal targeting 1905 and 1915, perhaps as far as 1925.

  • A nice move last week at the end of the week as we beat 1895, reaching 1921/22 on Friday.

  • Silver is in a consolidation after three months of gains as we wait for a clear breakout.

  • WTI Crude February collapsed in the first week of January and recovered almost all of the losses last week. 

  • We could form an inverse head and shoulders with the neckline at 8100. So a break above here is a buy signal.

  • Today's Analysis

    Gold buy signal has been triggered targeting 1905 and 1915, and 1925. The following targets for this week are 1935 and 1939. 

    First support at 1910/05. Longs need stops below 1902. A break lower can target 1893/90. 

    Silver is stuck in a range from 2350 up to 2455 for four weeks. The first support at 2380/60 could hold the downside. Better support at 2330/20.

    Holding above 2380 can target 2410, perhaps as far as 2430/40. Minor resistance at last week's high of 2450/55, so a break above 2460 should be a buy signal this week.

    WTI Crude February beat strong resistance at 7550/7600 to target 7800/20 and even 7900/30 yesterday, as expected. Further gains look likely on Monday and meet resistance at the upper trend line of the 6-week range at 8090/8100. A break above 8130 meets stronger resistance at 8180/8210. A high for the day is possible, but shorts need stops above 8280. A break above is an important buy signal and indicates the longer-term bull trend has resumed.

    The downside is likely to be limited for Monday. Minor support at 7940/20. Better support at 7840/10.

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