Gold Breaks Lower on Head and Shoulders Pattern: What’s Next?
2023.11.09 04:49
Today’s Trade Ideas:
Gold broke the neckline of the head and shoulders pattern on the 1-hour chart at 1976/75 for our sell signal. The break below 1955 adds pressure to the downside and as we wrote yesterday, further losses are expected to 1943/40 and even 1934/31 is possible eventually.
Minor resistance in 1953/56 could hold a rally today. However, if we continue higher we should meet resistance at 1968/70.
Silver has been in a volatile sideways consolidation, up for a couple of days, then down for a couple of days in the sideways trend.
We are holding with the range set 3 weeks ago of 2235-2370. I will wait for a breakout which could be to the downside if we follow Gold. A break lower targets 2195/90, perhaps as far as 2170/65.
December futures broke the lower end of the 1-week range at 8040/8000 hitting our targets of 7940/10 and then 7800/7760. I hope you managed to short on the breakout.
Yesterday we wrote:
With bears in control, further losses are expected towards 7590/50 and 7510/00. (A low for the day here yesterday). A break below 7470 signals further losses towards 7390/60.
Gains are likely to be limited with minor resistance at 7760/90. Shorts need stops above 7830.
