August gold closed sharply lower Tuesday
August gold closed sharply lower due to profit taking on Tuesday and below the 10-day moving average crossing at 946.00 signaling that a short-term top has likely been posted. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 934.80 would confirm that a short-term top has been posted. If August extends this month’s rally, the reaction high crossing at 966.70 is the next upside target.
First resistance is Monday’s high crossing at 960.00. Second resistance is the reaction high crossing at 966.70. First support is the 20-day moving average crossing at 934.80. Second support is this month’s low crossing at 904.80.
September silver closed lower due to profit taking on Tuesday as it consolidated some of this month’s rally. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought and are turning neutral hinting that a short-term top might be in or is near. However, it will take closes below the 20-day moving average crossing at 13.364 to would temper the near-term friendly outlook in the market. If September extends this month’s rally, the reaction high crossing at 14.335 is the next upside target.
First resistance is today’s high crossing at 14.095. Second resistance is the reaction high crossing at 14.335. First support is the 10-day moving average crossing at 13.599. Second support is the 20-day moving average crossing at 13.364.