Gold and Silver to Head Lower, Crude Oil Trades Sideways
2023.02.08 06:20
Gold bearish engulfing candle on the daily chart & then the weekly chart suggested the 3-month rally in Gold just ended.
Chart
Silver huge bearish engulfing candle on the weekly chart is a sell signal as we take out all the candles for the 7 weeks last week.
Chart
April unexpectedly recovered all of Friday’s steep losses yesterday.
Today’s Analysis
Gold crashed almost $100 from Wednesday’s high in just 2 days, leaving a brutal bull trap for those who bought into longs over the past 3 weeks (& did not take the profit).
Further losses look very likely, with a break below minor support at 1855/50 acting as the sell signal to target 1830/25. Eventually, we could fall as far as 1790/80.
Shorts at 1882/85 worked perfectly, with a high for the day exactly here. Today we can try this again with a stop above 1890. A break higher, however, can target 1896/98.
Silver is holding the most important support of the week at 2210/00 perfectly all week so far. A low for the day exactly here yesterday, but longs need stops below 2185. A break lower is a sell signal & sees 2200/2220 act as resistance to target 2170/60 & 2135/30.
Longs at 2210/00 can target resistance at 2260/70 for profit-taking. Shorts need stops above 2280. Strong resistance at 2300/2310. Shorts need stops above 2320.
WTI Crude shorts at 7590/7630, unfortunately, stopped above 7660 for a buy signal seeing 7640/00 act as support, targeting 7720/50. A high for the day here, but further gains are possible today to resistance at 7840/80. Shorts need stops above 7910. A break higher can target the February high at 7940/70, then 8020/40.
Support at 7560/30. Longs need stops below 7490.
