Gold Reverses From Sell Level at $1932/36: What’s Next?
2023.09.20 04:47
made a high for the day exactly at key resistance at 1932/36 and shorts need stops above 1939. A break higher is a buy signal for this week targeting 1945 and 1955.
Targets for our shorts: 1928 and 1925. A break below 1923 signals further losses towards 1920 and 1916.
Silver holding around the middle of the 6-month sideways consolidation. All I can suggest is to try a short at 2455/70. Shorts need stops above 2480.
Try a long at 2235/20. Longs need stops below 2205.
October longs at my buying opportunity at 8970/50 worked perfectly as we hit my target of 9300. An easy 300 ticks for swing traders.
Remember, I actually predicted the rally from the $65 over 4 months ago.
Yesterday I warned you: We are severely overbought so be careful running longs. Certainly taking some profit is advisable. However, there is definitely no sell signal.
Therefore it was no surprise to see prices tumble after hitting my $93 target and make a low for the day almost exactly at first support at 9100/9080.
Could I have been any more accurate over the last few weeks? Longs need stops below 9050.
I believe we will now enter a consolidation phase to ease severely overbought conditions, so expect some sideways trading. We do not yet know the pattern of the sideways consolidation so we must wait.
We should have strong support at 9000/8950 and the Bulls have certainly not given up at this stage. Longs need stops below 8900.
Today’s Trade Ideas Sheet:
