Gold rallied yesterday heading back towards the 50-days SMA at 1685.00, but the overall bearish wave continues to be confined within the main descending channel, while RSI continues to trade below 60 level, therefore, the overall bias remains bearish, and as we mentioned yesterday, we anticipated a rally that could provide another opportunity to short the metal at higher levels.
Only a sustained break above 1695.00, accompanied with RSI crossing 60 level that confirms a bullish reversal.
Support: 1677.00, 1672.00, 1666.00, 1660.00, 1653.00
Resistance: 1685.00, 1695.00, 1702.00, 1717.00, 1723.00
Recommendation: Based on the charts and explanations above, we recommend selling Gold around 1685.00 targeting 1675.00, 1666.00 and 1653.00. Stop loss above 1695.00
Silver jumped above 31.50 resistance to settle back above the 50-days SMA, but found resistance at the short term descending trend line. A break above the trend line followed by the latest high at 32.43 could confirm another leg higher towards the main descending resistance for the whole bearish wave. For now, we prefer to remain on the sidelines.
Support: 31.80, 31.45, 31.00, 30.45, 30.10
Resistance: 32.50, 32.90, 33.30, 33.50, 33.80
Recommendation Based on the charts and explanations above, we recommend to remain neutral