Gold: The Double Bottom Turns The Outlook Positive

(April 1, 2021 - Jason Sen)

Gold – Silver

Gold Spot we wrote: Gold collapsed straight to very important strong support at1685/75 & bottomed exactly here. A bounce from here leaves a bullish double bottom pattern which is likely to trigger gains to 1690/95, perhaps as far as 1700/05today. These are only minor resistance levels. If we continue higher, perhaps later in the week look for 1710/12, perhaps as far as are 1717/19.

Another perfect call as we shot higher to 1715.

Silver Spot manages a bounce towards 2nd resistance at 2470/80.

Daily analysis

Gold rocketed from very important strong support at 1685/75 as expected to 1710/12& almost as far as are 1717/19. The double bottom turns the outlook positive &therefore downside is expected to be limited with minor support at 1705/03 & also at1695/93. Either of these levels could see a low for the day with bulls likely to remains in control. However if we continue lower we obviously meet very important strong support at 1685/75.

A break below 1672 however is likely to trigger further losses to the 200 day moving average at 1660/57. This is the last line of defense for bulls. A break below 1653could trigger significant losses in to next week.

Strong resistance at 1718/21 may see a high for the day. We should struggle to beat this level today. However a break above 1725 opens the door to 1730/33 & a test of strong resistance at 1742/45.

Silver has minor support at 2425/15 but below here can 2405 can retest 2385/75. A break below 2360 risks a slide to 2300/2290.

Strong resistance at 2480/90 could see a high for the day. A break above 2500 however opens the door 2525/35.

Chart