Gold seems to have setup for a counter trend rally as discussed yesterday. The yellow metal has held on to its lows at $1,277.69 levels and managed to rally through $1,289.00/90.00 levels until now, and a continued push towards $1,308.00 levels seems most likely. Looking at the wave structure, the yellow metal had dropped lower in an impulse from $1,357.00 through $1,277.00 levels earlier. The most likely and probable wave count is towards the north side upto $1,330.00 levels in an a-b-c wave form. Furthermore, the overall structure also indicates that Gold has not yet completed its drop and is preparing for a much deeper correction. Please take this counter trend rally as an opportunity to go short again. Resistance remains strong at $1,357.00 levels and ideally prices should stay lower.
Aggressive: Look to remain long with stop below $1,277.00 levels, target $1,308.00 and $1,330.00
Conservative: Please look to sell higher through $1,330.00 levels, stop above $1,357.00 target below $1,277.00
Silver chart setups:
Silver pretty much remains unchanged from yesterday, preparing to resume its counter trend rally. Looking into the resent wave count, the metal had dropped lower from $18.20 levels into 5 waves forming an impulse. With the lows formed at $16.70 levels, it looks like an intermediary bottom has been formed and a counter trend rally should materialize from here. On the flip side, yet another low is also possible towards $16.50/60 levels, before Silver begins to rally higher towards $17.30 and $17.60 levels respectively. The metal is expected to rally towards $17.60 into 3 waves forming an a-b-c, as depicted on charts here. Also note that immediate resistance is seen at $17.30 levels while support is seen at $16.60 levels respectively.
Aggressive: Remain long for now with stop around $16.40 levels, targeting $17.30 and $17.60 levels.
Conservative: Please look to sell higher at $17.60, stop above $18.20 targeting lower.
Please watch for CAD GDP figures and USD Consumption Expenditure Deflator at 0830 AM EST today.