Gold and Silver Break Higher
2023.04.06 07:06
was expected to break higher eventually. On Monday we shot higher to the upper trend line of the flag at 1990/94 & we wrote: A break above here should be a buy signal & can target 2001/2003 then the March high at 2008/2009. A break above 2011 is a buy signal.
Well as soon as Gold broke above 1994 the price soared & we went straight to 2024. I hope you had your pending ”buy-stop to enter order” & caught the move (I did notify you in the Telegram group). The outlook remains positive for Gold & I do expected us to test the all-time high at 2068-2072. In fact I think we will probably break above this area at some stage in the spring.
Obviously we have strong support at 2010/2007 (with a low for the day exactly here yesterday in fact). However, if we continue lower, the best support for today is at 1998/95. Longs need stops below 1990.
break above 2525 (probably next week) can target 2690/2700 & 2730/35. Worth holding those longs in silver through April I believe.
Downside is expected to be limited of course, with first support at 2470/60. Longs need stops below 2445. A buying opportunity at 2400/2380 if we fall this far – longs need stops below 2370.
WTI Crude (May) retested the Monday opening high at & resistance at the upper trend line of the bear flag which formed from December to March at 8160/80. A break above 8200, therefore, is a buy signal (& I am sure will break higher eventually – I was already bullish before the production cuts). We should shoot straight to resistance at 500 & 200-day moving averages at 8380/8430.
There’s obviously a huge gap down to 7600/7580 although now looks unlikely that we will close it. This week’s low is 7900, so a break below here is needed for a chance to close that gap.
It would be such an excellent buying opportunity at 7600/7580, but it is such an obvious trade that I think we will probably bounce above this level – I can only guess….maybe around 7750/7700.
