Gold: Now We Have A Bullish Engulfing Candle Buy Signal

Published 07/26/2022, 03:05 AM
Updated 07/09/2023, 06:31 AM

WTI Crude 4-Hrs Chart

Gold Spot bounced from my buy opportunity at 1680/75. Longs worked perfectly on the bounce to my target of 1705/10 for an easy 25-30 point profit.

We wrote: Now we have a bullish engulfing candle buy signal so further gains are expected to 1725/27 & probably as far as 1735/38. - Targets hit with a high for the day exactly here in fact.

Silver shorts at resistance at 1895/1905 worked perfectly on the slide to 1850 & 1821.

Silver then bounced in line with Gold leaving a double bottom buy signal with a hammer candle for confirmation.

WTI Crude could be forming an inverse head & shoulders with neck line at 100.00/100.50.

Remember when support is broken it usually acts as resistance & vice-versa.

Today's Analysis

Gold higher again as predicted to my 1735/38 target with a high for the day exactly here. Prices then dropped nearly 20 points but outlook remains positive at this stage. Holding first support at 1727/25 targets 1735/38. Above 1740 look for 1753/55 this week.

Downside is expected to be limited with support at 1727/25 but better support at 1715/10. Longs need stops below 1705.

Silver made a high for the day at first resistance at 1895/1905 on the bounce. Resistance is higher today at 1910/20 but shorts are more risky after the double bottom - a break above 1930 is a buy signal targeting 1975/85, perhaps as far as strong resistance at 2010/30.

Holding 1910/20 risks a slide to 1860/50 (a low for the day exactly here om Friday), before a retest of 1820/10.

WTI Crude September 100.00/100.50. A break above 101.00 is a buy signal targeting 103.00/50, perhaps as far as 106.00/50.

Minor support at 9630/00 & again at 9480/40. A break lower can target 9330/00.

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