Gold: Breakout Above $2,728 Confirms a Buy Signal for This Week

2025.01.23 05:09

• Gold () break above 2728 was our buy signal for this week targeting 2735 and 2746/49 for profit-taking.
• Yesterday we held just above 2740 to keep the bulls in control.
• The push higher through 2752 was another buy signal yesterday targeting 2761/62.
• We made a high for the day exactly here and hopefully, you bagged another 10 points profit to add to Monday’s profits (and last week’s profits where we were buying at 2695/90).
• Further gains are possible today despite overbought conditions and above 2764 look for 2772/74 before a retest of the all-time high at 2790.
• This will be key to direction but I would not try a short here – I will wait to see if there is a sell signal for a potential double top.
• A break above 2792 is another strong buy signal and I think this is the more likely scenario.
• This morning a short-term correction to the downside is certainly possible to ease overbought conditions.
• I think shorts are too risky and I prefer to wait and try to buy at 2740/36.
• Longs need stops below 2731. Targets: 2750, 2755, 2760
• The best buying opportunity is at 2723/2719 if we fall this far and longs need stops below 2714.
• Targets: 2730, 2736.

Silver

1. Silver () is not moving significantly so there are no opportunities that I can see.
2. By Tuesday we recovered all of Friday’s losses.
3. Yesterday we held within the upper end of Tuesday’s range.
4. At this stage it’s better to wait for clarity, or at least a tradeable trend or pattern as I can see no clear signals.
5. Just be aware that a break above last week’s high at 3100 can target 3112/14 and 3130.

WTI Crude March Futures

Last session low and high: 7528- 7645.
(To compare the spread with the contract that you trade).

• just held the 7560/7600 resistance with prices reversing from 7645.
• Holding below here risks a slide to 7450/30 and even 7370/7330 (as reported yesterday).
• However, a break above 7650 (which did hold yesterday) signals we are establishing a short-term sideways range and prices could recover as far as resistance at 7700/7740.
• There is a good chance of prices reversing again from here but shorts need stops above 7790.

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