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Trade Signals Forming At GLD and SLV Swing Point

Hong Kong mercantile exchange’s joined the bullion margin increase trend, following the lead of Chicago in trying to halt speculative interest in gold and silver trade via increased cash requirements to open and maintain bullion positions. TheLFB daily client note updates have highlighted that resistance to moves higher is strong, and indicated that the pattern of buying gold and silver at support will be tested in the near-term.

Outlook:
The moves lower through 1505 on gold, and 37.00 on silver, after both bullion markets completed near-term long trade signal targets, instigated market alerts to monitor the moves in bullion exchange traded funds (ETF’s). GLD (145.40), the ETF that tracks gold momentum, will trigger a sell signal with a break of 144.70. SLV (32.40), the ETF that tracks silver momentum, will trigger a sell signal with a break of 31.60. Both areas however look to have strong support.

Sentiment towards bullion trade is mixed, after recent price action became volatile after both markets hit record highs. Price action favors a bounce off support, in-line with a pattern of trade this year that buys the dips on both GLD and SLV markets. Caution is required with any positions in gold and silver markets as TheLFB trade desk is expecting the one-day-up, one-day-down trading pattern to continue into next week.

Price Action:
There was strong buying activity at 1490 on gold, and 33.00 on silver in March, which is where bullion now trades. There will be upside resistance at 1525 on gold and 36.70 on silver in the near-term. These support and resistance 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 the 100-day SMA is @ 34.70 on silver. The 20-day SMA on gold is @ 1510 and the 50-day SMA is @ 39.60 on silver.

The detail below will help guide traders with analysis on intra-day price movement, trend, and momentum in the ETF markets that track bullion trade. 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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