Technical Brief: $1325 and $1947 are key for Gold and Silver

Technical Brief: $1325 and $1947 are key for Gold and Silver

 

  • Gold soldoff during the debate on light volume
  • Without an event, gold will drift and test Bull patience
  • Silver has to hold 1947 on a closing basis

 

Summary

Gold and the Peso sold off during the debate while S&P futures rose. To us this is a reflection not that Hillary performed better than Donald (she did), but more a comment on the relief that viewers had at her not keeling over in the first 30 minutes. That comment is based on the fact that Trump was stronger during the first 15 minutes than she was. Yet the markets moved counter to that. Call it a relief rally. For next debate we are in favor of blood tests upon debate commencement, for BOTH candidates. All Hillary had to do to win last night was hand a tissue to Donald. Somebody buy the man some Afrin please.

 

Re-animated Hillary  Gains

Reality Check

Meanwhile, the reasons to worry about the US and world economy have changed, but for the worse. Deutschebank's shares are sinking worse taking US and other nation's banks down with them, Greece remains unsolved, the UK is headed to a hard Brexit, and China is in a serious slowdown. Stocks have given back the Hillary bounce already. QE may not be the answer, but it is coming.

 

Gold and the Peso

There is no way the Peso moves like that on the debate opening unless the real fear was Hillary even making it

 

Gold's Debate Action

If I were short Gold and wanted to "entice" the market lower on light volume, this is how I'd do it.

  • Only a close under $1325 (Fibonacci Pivot)negates the  recent Bull reversal
  • Between 1325 and 1350 is the comfort zone
  • Above 1350 > 1380>

"Gold continues to meander, awaiting a catalyst. In quiet. low volume markets, without this catalyst, gold is likely to wander lower"- Peter Hug

We agree and are now watching the compressing volatility for a new cycle of movement.

 

Silver

  • MKt has to close over 1947 today (Fibonacci Pivot)
  • Close over 1947 sets up potential surge over 2015>2036
  • Under 1947 puts mkt in neutral area down to 1900
  • under 1900>1880 = bear follow through washout risk

 

 

 

 

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