Gold with an Inside Day
August gold posted an inside day with a lower close on Tuesday as it consolidates some of Monday’s rally. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If August extends the rally, the reaction high crossing at 966.70 is the next upside target. Closes below the 10-day moving average crossing at 929.20 would temper the near-term friendly outlook in the market. First resistance is Monday’s high crossing at 955.40. Second resistance is the reaction high crossing at 966.70. First support is the 20-day moving average crossing at 931.20. Second support is the 10-day moving average crossing at 929.20.
September silver posted an inside day with a lower close on Tuesday as it consolidated some of Monday’s rally but remains above the 20-day moving average crossing at 13.415. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If September extends Monday’s rally, the reaction high crossing at 14.335 is the next upside target. Closes below the 10-day moving average crossing at 13.109 would temper the near-term friendly outlook in the market. First resistance is Monday’s high crossing at 13.750. Second resistance is the reaction high crossing at 14.335. First support is the 20-day moving average crossing at 13.415. Second support is the 10-day moving average crossing at 13.109.