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Gold Likely to Remain Volatile as Banking Crisis Develops

Published 03/16/2023, 05:56 AM
Updated 07/09/2023, 06:31 AM
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Gold was forming a bull flag as predicted. Longs at strong support at 1893/90 worked perfectly as we held above 1885 & shot higher to my targets of 1914, 1924/26 & 1935.

An easy 40-point profit. You've had a great week if you only did this trade all week.

Silver spent a long time holding resistance at 2095/2105 & it looked like silver could not break higher to follow Gold. However, eventually we broke higher for a buy signal & reached my target of 2190/99 with a high for the day exactly here.

Silver not as strong as gold but held minor support at 2150/40 to target minor resistance at 2210/20. I thought shorts here could be risky but in fact they worked perfectly if you tried them. Silver held below the stop at 2240 & collapsed to 2161.

Crude Oil WTI Futures MAY broke the lower end of the 4 month range.

We wrote: A break below 6990 targets 6920/00 & 6850/40, but we could eventually fall as far as 6650/20.

WOW! I did not expect that target to be hit in a few hours. If you managed to short on the break there was a very quick 300 tick profit offer before we hit 6565.

Today's Analysis

Gold higher as expected yesterday, with longs at 1893/90 making huge profits on the bull flag breakout as we hit 1935. Still no sell signal although be aware that we do have negative divergence on the 4 hour chart. We could start to trade sideways, but likely to remain volatile as the banking crisis develops. Two support levels at 1909/05 & 1890/86. Both need a 5 point stop, as usual.

Targets for longs at 1909/05 are 1916 & 1923. Above 1926 can retest 1935/38. A break higher always possible & can target 1947/49 before a fret of the 1956/59 high. 

Silver holds resistance at 2210/20. Again shorts need stops above 2240. A break higher is a buy signal & can target very strong resistance at 2295/2305.

Downside is expected to be limited with first support again at 2150/40. Longs need stops below 2130.

WTI Crude (May) offered a 300 tick profit on shorts on the break of support as we hit 6650/20.

Looking at the weekly chart below, we could have hit the targets for the breakout already.

Gold Chart

We should have strong support at 6550/6450. Longs need stops below 6350. A break lower can target 6200/6150.

First resistance at 6900/6950. Shorts need stops above 7000. A break higher targets 7150.

Currency Pair Valuation

Video Analysis:

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