Gold, Silver, and WTI Crude Analysis
Gold Analysis
Gold has been experiencing a bullish trend for the past five months, with buying at support levels proving to be a successful strategy. Yesterday, the bulls remained in control of the market after holding two points above minor support at 2010/07. This led to the next targets being set at 2030/31 and 2047/50, with a high for the day at that level.
However, it is important to note that Gold is currently severely overbought and is testing an upward-sloping 4-week trend line at 2050/53. This presents minor resistance for today and could lead to a possible downside correction. It is essential to understand that shorts are very risky in a strong bull trend, and traders must approach the market with caution.
Despite the potential for a downside correction, further gains in Gold could lead to a retest of the all-time high at 2069/72. Traders should also note that today’s first support is at 2032/2029, and long positions must set stops below 2024. Additionally, there is very strong support at 2008/2003, and long positions must set stops below 2000.
Overall, Gold has been experiencing a strong bullish trend for the past five months, with buying at support levels proving to be a successful strategy. While there is potential for a downside correction, traders must approach the market with caution and consider the risks involved when trading in a strong bull trend. With careful analysis and risk management, traders can navigate the market and potentially benefit from the current bull trend in Gold.
Silver Analysis
Silver has also experienced a strong bull trend for the past five weeks, breaking above 2525 to target 2690/2700 and 2730/35 (currently at 2606). It’s advisable to hold those longs in silver throughout April, with a substantial profit already seen on the 200-point gains in less than two weeks.
The downside is expected to be limited again today, with the first support at 2570/50, and longs must set stops below 2530.
WTI Crude Analysis
WTI Crude (May) broke above 8200 for a buy signal as expected and retested the breakpoint at 8200 to provide a buying opportunity. It should shoot straight to resistance at 500 and 200-day moving averages at 8380/8430 (yesterday’s high for the day). A break above 8430 is the next buy signal.
However, failure to beat resistance at the 500 and 200-day moving averages at 8380/8430 (in overbought conditions as it did yesterday) risks a slide to a buying opportunity at 8200/8160. Longs need to set stops below 8120.
