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Bullion Trade Signals Hit Their Targets

News wires are quiet in regard to recent moves higher in precious metal trade, after attributing the recent pull-back to support by gold and silver to increases in margin requirements when buying bullion. TheLFB daily client note updates have highlighted that support was in place, and indicated that the buying of gold and silver looked set to resume. The warnings to close any short positions and now look to be buying bullion were well timed.

Outlook:
A tradable call to action on gold was sent to clients recently, with a trade signal to buy the gold markets (via bullion, ETF’s, or Options) when XAU (gold bullion) broke above 1506. The trade signal was in-line with global equity and risk markets finding buyers. The initial 1515 target has been hit, with 1535 as target 2.

A tradable call to action on silver was sent to clients recently, with a trade signal to buy the silver markets (via bullion, ETF’s, or Options) when XAG (silver bullion) broke above 38.20. The trade signal was in-line with global equity and risk markets finding buyers. The initial 39.20 target has been hit, with 42.90 as target 2.

Sentiment towards bullion trade moved back to bullish recently. Price action favored a bounce off support that bought the recent dips on both GLD and SLV markets. Caution is required in being short the gold and silver markets as TheLFB trade desk is not expecting a collapse of GLD and SLV values below 1460 and 32.50 respectively.

Price Action:
There was strong buying activity at 1490 on gold, and 33.00 on silver in March, which are now solid areas of support that will be very difficult to break. There will be upside resistance at 1549 on gold and 43.00 on silver in the near-term. These swing point areas, where a near-term trend is tested as price action reverses previous trade direction, will be closely monitored and market alerts sent to subscribers as things unfold.

The daily trading range is $19 on gold and $1.20 on silver, which are above the historical norm and indicating speculative interest is high. The 50-day Simple Moving Average (NYSE:SMA) on gold is @ 1465 and @ 39.60 on silver. The 20-day SMA on gold is @ 1510 and @ 43.20 on silver.

The detail below will help guide traders with analysis on intra-day price movement, trend, and momentum. Clients will note how regularly the Swing Point and Support or Resistance areas below are used each day.

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Content taken from TheLFB Trade Plans

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