Gold: Potential New Leg Higher Very Likely in the Longer Term
Gold
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Gold (XAU/USD) we have a potential new leg higher in the longer-term 20-year bull trend just starting. Yesterday we hit the first new target of 2525/28, but then collapsed to 2501.
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Despite this small short-term correction, we remain in a bull trend of course and holding above 2509/05 today allows a recovery to 2525/28.
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On a break above 2533 look for 2539/43, perhaps as far as 2554/56. We could eventually reach 2565 and 2578/82. Even 2599/2602 is possible.
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A break below 2500 risks a slide to a buying opportunity at 2494/91. Longs need stops below 2485.
Silver
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Silver (XAG/USD) break above 2920 was another buy signal for this week targeting 2940/45 and 2970/75 which was hit yesterday as predicted before we reversed from 2996.
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My first buy level is at 2920/2900 and longs need stops below 2875. Targets: 2940, 2960, 2980
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A break above 3000 is a buy signal targeting 3035 and 3060.
WTI Crude Futures
Last session low and high for the October contract: 7254 – 7438.
(To compare the spread with the contract that you trade).
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WTI Crude remains caught in a longer-term sideways channel, around 2 years old with moving averages flatlining and converging for 6 months. For the last 11 months, WTI Crude has been consolidating in a narrowing triangle pattern as the monthly ranges decrease.
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It’s impossible to gauge the direction in this random sideways trend, but holding below; the first resistance at 7360/7400 can target 7220/7200, perhaps as far as 7170/40. Further losses retest the August low at 7100/7088.
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First resistance at 7360/7400 and shorts need stops above 7445.
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Bulls need a push higher through 7490 to target resistance at 7560/90 and shorts need stops above 7640.
