Gold: Now we have a bullish engulfing candle buy signal so further gains are expected to 1725/27

Gold Spot broke lower to my next target of 1690/85 with a low for the day exactly at my buy opportunity at 1680/75. Longs worked perfectly on the bounce to my target of 1705/10 for an easy 25-30 point profit.

The bullish engulfing candle on the daily chart is buy signal.

Silver shorts at resistance at 1895/1905 worked perfectly on the slide to 1850 & 1821.

Silver bounced in line with Gold yesterday leaving a double bottom buy signal with a hammer candle for confirmation.

Daily analysis

Gold broke lower as expected to hit my next target & strong support at 1680/75 for profit taking on shorts. Longs here also worked perfectly reaching my target of 1705/10. Now we have a bullish engulfing candle buy signal so further gains are expected to 1725/27 & probably as far as 1735/38.

Downside is expected to be limited with support at 1699/96. However below 1690 risks a retest of the buying opportunity at 1680/75.

Silver held 5 ticks from first resistance at 1895/1905 on the bounce. Resistance is higher today at 1910/20 but shorts are more risky after the double bottom – a break above 1930 is a buy signal targeting 1975/85, perhaps as far as strong resistance at 2010/30.

Holding 1910/20 risks a slide to 1860/50, before a retest of 1820/10.

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