Gold Finally Showing Tradeable Pattern
2022.10.24 11:47
has been confusing for more than a week. During this period gold has been in daily ranges of 25 to 40 points, but mostly up one day down the next day in very volatile conditions.
Spot Gold Chart.
Having trended lower for three weeks in October, it came close to retesting the September low at 1614/13 before a huge bounce to strong resistance at 1647/52. Finally, we have a tradeable pattern.
beat first resistance at 1880/90, this time targeting 1925/35, perhaps as far as 1970/80 on Monday.
Silver Chart.
for December establishes a sideways trend after reversing from below the late August high earlier this month. It is likely that the weekly ranges will decrease now and we will see lower volatility as we head towards the apex of the triangle.
Last week we held a range of 8130 – 8714 and closed the week up only 40 ticks.
Remember when support is broken, it usually acts as resistance and vice-versa.
Today’s Analysis.
Gold had a series of large-bodied red candles throughout October with any recoveries quickly reversed by the end of the day in a clear bear trend. However, last Friday’s enormous bullish engulfing candle from just above the September low signals a potential double-bottom buy signal. First resistance at 1656/60. A break above 1664 is a buy signal targeting 1670/72 and second resistance at 1684/87. A high for the day is likely, but shorts may be more risky now.
Holding 1656/60 can target 1650 and possibly support at 1645/42. Watch for a low for the day after the bullish engulfing candle. It could be worth trying a long with a stop below 1637.
Silver beat first resistance at 1880/90 this time targeting 1925/35, perhaps as far as first resistance at 1970/80 on Monday. Shorts could be risky, but if you try, stop above 1995 and then use 1980/70 as support to try to enter a long targeting 2030/35 & 2080/90.
We should have support at 1885/75.
WTI Crude December has strong resistance at 8600/50 again today. Shorts need stops above 8700. A break higher this week targets 8800 and perhaps 8900/8920.
We broke first support at 8530/8480 to make a low for the day at the next target of 8340/20. A break below 8300 risks 8230/10, perhaps as far as last week’s low at 8150/30.
