Gold and Silver: Analysis and Trading Strategies
Gold and silver have shown a good trading range as they have mostly traded in the range of 1980 to 2010. The 2020 levels precisely stayed in the box and silver 2 has failed to break past or sustain about 25.20. In this article, we will see what to expect today and which position you should take in order to profit from trading gold and silver. We will use charts and indicators to analyze the market.
Gold Analysis
Looking at the early chart, gold has consistently shown higher lows and higher highs. This time, it has achieved the highs of this channel, which is 2010. However, 2010 is still a very strong resistance zone, and it is recommended to put a five-dollar trailing stop loss until 2020. On the hourly charts, the next resistance level is 2002, and one can buy if it trades above that. The resistance levels to expect are 2005 and 2010. At the same time, a good support level is 1990. If it drops to this level, one can sell and expect it to drop further to 1980, which is a stronger support level. The stockistic is back to overbought zone, the MACD is seen crossing over, and the RSI is also looking up.
On the 2HR, gold is showing higher highs and higher lows trying to trade in this channel. If it trades below 1980, one can remain short. The stockistic is indicating bullishness, and the RSI is looking upwards, showing some strength. On the 3HRC, the slope of the retracement is different, and it is trying to close some of the open positions threatening the sellers. Until 2002, it is recommended not to buy gold, and if you are buying, be cautious of 2005 and 2010, which are the next resistance levels.
Silver Analysis
On the daily chart, the candle has started flat, and there are lower highs and higher lows. The levels of 1980, 2010, and 2020 are still in play, and they should not be considered bullish. The safer entries for a buy are about 2002, where one can expect 2005 and 2010. However, only if it trades above 2010, one can expect further rise. On the downside, it is recommended to sell at 1990, but one must be watchful of the 1980 levels, which are very strong support.
Conclusion
In conclusion, gold and silver have been showing good trading ranges, and it is recommended to put a trailing stop loss for a safer trade. Until 2020, it is recommended to put a five-dollar trailing stop loss. The next resistance levels for gold are 2005 and 2010, while for silver, they are 2005 and 2010, and one must be watchful of these levels.
Gold:
Gold has shown mostly range-bound trading between 1980 and 2010 levels.
2010 is a strong resistance zone, and traders should be cautious around this level.
A five-dollar trailing stop loss should be put in place until 2020.
Entry for a buy position: If gold is trading above 2002 levels, expect resistance at 2005 and 2010.
Exit for a buy position: 2010 is the next resistance level.
Entry for a sell position: If gold is trading at 1990 levels, expect it to drop further.
Exit for a sell position: 1980 is a strong support level, and a further drop may be seen below this level.
Stay short below 1990.
Silver:
Silver has failed to break past or sustain above 25.20 levels.
2002 levels are the next resistance, and traders should be cautious around this level.
1990 is a good support level for selling positions.
A further drop may be seen below 1980 levels.
Entry for a buy position: If silver is trading above 2002 levels, expect resistance at 2005 and 2010.
Exit for a buy position: 2010 is the next resistance level.
Entry for a sell position: If silver is trading at 1990 levels, expect it to drop further.
Exit for a sell position: 1980 is a strong support level, and a further drop may be seen below this level.
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