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Gold: Weekly Close Above $1686 Is A Buy Signal

Published 09/30/2022, 08:09 AM
Updated 07/09/2023, 06:31 AM
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Gold spot made a low for the day exactly at first support at 1644/41. Longs worked perfectly on the bounce back to resistance at 1653/58.

Crude 4 Hrs Chart

Silver held below Wednesday's high so same levels apply for today.

WTI November saw a bounce from important 100 week moving average at and 500 day moving average support at 7800/7600 and completed the bullish inverse head and shoulders pattern to confirm a buy signal. Yesterday we held just 10 ticks from key resistance at 8300/8350.

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

Today's Analysis

Gold making a break above resistance at 1653/58 so holding above 1660 can target longer term Fibonacci and 200 week moving average resistance at 1677/81. A high for the day is expected. Shorts need stops above 1686. A weekly close above here is a buy signal for next week.

Holding key resistance at 1653/58 targets 1650 and first support at 1644/41. Longs need stops below 1637. On a break lower look for 1632/30.

Silver shot higher to retest resistance at 1890/1910. Holding here today re-targets 1870 and support at 1850/40. Longs need stops below 1835. If we continue lower look for 1810/00, perhaps as far as 1785/80.

First resistance at 1890/1910. Shorts need stops above 1930.

WTI Crude November longs at important support from 1 and 3 month trend line and 100 WMA at 7800, down to the 500 day moving average at 7600 worked perfectly. The potential head and shoulders pattern was completed with a break above 7920 to target 8100/8150 and just 16 pips from my ultimate target of 8250 for profit taking.

A high for the day just 10 ticks from key resistance at 8300/8350 so this remains key for today. Shorts need stops above 8400. A break higher targets 8600, perhaps as far as strong resistance at 8740/60.

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