Technical outlook:
The yellow metal is preparing for a counter trend rally after printing fresh intraday lows at $1,277.69 levels today. The metal has rallied through $1,285.00 levels in the past 2 hours indicating a potential counter trend ahead. Looking at the wave structure since $1,357.00 levels, Gold has dropped lower into 5 waves labelled as 1 through 5 above. This indicates that the yellow metal has formed wave (1) of a higher degree or it has formed wave A of a much deeper correction A-B-C zigzag. The most probable wave count from here is a potential rally through at least $1,308.00/10.00 levels, which is fibonacci 0.382 resistance of the entire drop as shown here, or it could push higher through $1,327.00/30.00 levels which is fibonacci 0.618 resistance as seen here. Immediate price resistance is seen at $1,313.00 levels, while support is at $1,275.00 levels respectively.
Trading plan:
Aggressive: Long now, stop below todays low, target $1,310.00 and $1,330.00
Conservative: Look to sell higher at $1,330.00 levels, stop above $1,358.00 targeting lower towards $1,250.00
Silver chart setups:
Technical outlook:
Silver is also looking to produce a counter trend rally after having produced intraday lows at $16.67 levels today. The metal trades at $16.81 levels for now and is looking to push higher towards $17.30 and $17.60 levels which are fibonacci 0.386 and 0.618 resistances of the entire drop from $18.20 through $16.67 levels respectively. Looking into the wave structure, Silver has produced an impulse (5 waves) from $18.20 levels labelled as wave (1) or wave A. A minimum implication from here is that the metal should produce a 3 wave counter trend rally through $17.30/60 levels, before turning lower again. Looking at a larger degree, Silver is poised to drop in 5 waves labelled Waves (1) through (5) or into 3 waves labelled A-B-C. For now, it is highly probable that Silver rallies through resistance before turning lower again. Resistance is seen at $17.20/30 levels, while support is at $16.65 levels respectively.
Trading plan:
Aggressive: Long now, stop at $16.40, target $17.30 and $17.60.
Conservative: Look to sell at $17.60, stop above $18.20 and target lower towards $16.00 at least.
Fundamental outlook:
Please watch out for German Consumer Price Index and USD GDP figures to be out between 0800 AM and 0830 AM EST.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com
No comments:
Post a Comment