Gold Establishing a Short-Term Bear Trend

Published 11/28/2024, 03:16 AM
XAU/USD
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XAG/USD
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SI
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Gold

  • Gold headed higher as predicted to strong resistance at 2648/52 and shorts needed stops above 2657.

  • This was tricky as Gold hit 2658 on the release of the inflation data in the US.

  • I hope that you managed to hold the short position!!

  • Gold crashed immediately after we hit 2658 and hit 2620.

  • I think we have completed the bear flag pattern and Gold will continue lower towards 2617/15 and eventually we will probably retest the November low at 2610/05.

  • A break below 2602 is a sell signal targeting 2595/94 and 2580/75, perhaps as far as 2565.

  • Gains are likely to be limited again today as we transition to a medium-term bear market.

  • I expect strong resistance again at 2648/52 and shorts needed stops above 2658.

Gold-Daily Chart

Silver

  • We wrote: Silver looks likely we will retest the November low at 2675/65.

  • As I write we are testing this level as predicted.

  • Unfortunately, we missed the sell opportunity at 3080/90 by just 10 ticks.

  • WE HAVE THE NECKLINE TO A HEAD and SHOULDERS AT 2955/45.

  • This is obviously the key level for today.

  • A BREAK BELOW HERE IS AN IMPORTANT MEDIUM TERM SELL SIGNAL INITIALLY TARGETING THE 200-day moving average at 2905/00.

  • However, just be aware that the measured target for the move is down towards the 500-day moving average at 2670/60.

  • Gains are likely to be limited after the bull trap with strong resistance at 3030/40 - here shorts need stops above 3060.

Silver Hourly Chart

WTI Crude January Futures

Last session low and high for the December contract: 6818 - 6937.

(To compare the spread with the contract that you trade).

  • WTI Crude made a high for the day exactly at first resistance at 6940/70
  • A break higher today meets the next target and resistance at 7030/60. Shorts need stops above 7090 here again today.
  • Holding resistance at 6940/70 again today retests minor support at 6850/30.
  • We made a low for the day almost exactly here yesterday.
  • A break below 6800 suggests further losses towards 6775/55 and perhaps as far as the November low at 6680/50.

Crude Oil-Hourly Chart

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