GOLD (XAU/USD) & SILVER (XAG/USD) – Buy and Sell Levels
XAU/USD & XAG/USD have dropped in value recently but a bounce occurred at crucial levels, on a Bullish Divergence.
The rise is unfolding on both precious metals with what appears to be Leading Diagonals.
Of course, when encountering a Leading Diagonal, one would expect a sharp decline before the next wave would occur, therefore, if a drop would occur in a Zig-Zag pattern, then this could pave the way for the trend to possibly continue with a Rally.
As per the previously posted “Fed December Rate Hike – DXY Technicals – Elliott Wave Analysis” article, the USD indeed got trashed and dropped like a rock. In my personal view, the Dollar Index (DXY) is still looking Bearish.
Recently, I was also paying attention to the Mining Vectors, especially the GDX, which is possibly looking Bullish, should break-out of the upper Channel occur.
The bounce from the lower Channel trend-line was in my radar, hence the reason why I decided to post the “XAGUSD - 2018 Bullish Outlook” article.
XAU/USD & XAG/USD could possibly overshoot a bit and exceed the upper Leading Diagonal converging lines, typical scenario for this type of Structure.
Verdict: short-term Bearish, medium-term Bullish
XAUUSD - SELL Position:
• 1267.00 (moderate) or 1270.00 (conservative) or Market Execution if aggressive
• SL @ 1278.00
• Target – 1249.00
XAUUSD - BUY Position:
• 1249.00
• SL @ 1235.00
• Targets – 1265.00 / 1285.00 / 1304.00
Verdict: short-term Bearish, medium-term Bullish
XAGUSD - SELL Position:
• 16.20 (moderate) or 16.30 (conservative) or Market Execution if aggressive
• SL @ 16.45
• Target – 15.85
XAGUSD - BUY Position:
• Entry @ 15.85
• SL @ 15.60
Targets – 16.20 / 16.60 / 17.00 / 17.50 / 18.00 / 20.00
Many pips ahead!