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!
