Gold Hits All-Time High of $2599 Before Bearish Engulfing Candle – What’s Next?
Gold hit my expected target of $2599 this week, reaching a new all-time high before quickly tumbling to 2546. This created a bull trap and a bearish engulfing candle on the daily chart in overbought conditions, highlighting the risks of trading during significant news events.
While this isn’t a definitive sell signal, it serves as a warning for bulls. We may see a period of sideways consolidation in the coming days or weeks, which has become common for Gold. If prices break above 2604, we could target 2620/22, but that seems unlikely at this stage. For now, I remain a buyer on further weakness, anticipating profit-taking that could push prices down to the previous all-time high of 2531/2526. I would consider going long there, setting a stop below 2521.
Silver Reaches $31.25 Before Crashing – What’s the Next Move?
Silver reached $31.25 before unexpectedly crashing to $29.68, leaving a large bearish engulfing candle in overbought conditions. This marks an important bull trap that caught many off guard.
If you entered a long position at support around 3010/2990, we’re now headed towards a first target of 3040, with potential to reach 3070. However, gains may be limited as yesterday’s move surprised many bulls. We could trend lower towards support at 2945/2935. For long positions, set stops below 2920. If this trade fails, we may find ourselves stuck in a longer-term sideways trend.
WTI Crude Futures Head Lower After Hitting Resistance – What’s the Outlook?
In the last session, the October WTI Crude contract ranged from 6973 to 7148. It successfully hit resistance at 7110/7150 before reaching the first target of 6990. I believe we have a good chance to continue lower towards 6890, possibly reaching as low as 6790 by the end of the week.
If we break below 6840, target levels could be 6800, 6730/6720, and potentially down to 6660. Consider going long at 6550/6500 with stops below 6400 for potential targets at 6690/6720, 6800/6820, and up to 6870/6900. A break below 6400 could signal further losses, possibly down to the 500-week moving average at 6200.
In conclusion, Gold is facing a possible period of consolidation, Silver is experiencing volatility, and WTI Crude is likely to trend lower. Keep an eye on key support and resistance levels for potential trading opportunities.