Emini S&P bounced perfectly from our buying opportunity at 1784/83 to hit 1799 but then collapsed, holding above our
buying opportunity at 1774/72 where a low for the week is likely. Today below 1790 keeps the market under pressure for 1785/84. If this does not hold the downside look for 1778/77 again, possibly good support at 1774/72 for a buying opportunity, with stops below 1769.
Above 1795 is less negative but we will need to beat strong resistance at 1799/00 for a test of 1805. Above here look for 1809 & possible a retest of all time highs at 1812 for a selling opportunity as we look for a bearish double top.
Weekly outlook: Support at 1774/72 where a low for the week is likely but a break lower risks 1747.
Gold unexpectedly broke all resistance to hit 1250. This week's candles formed a bottoming pattern so we should start to build a short term recovery to unwind the oversold scenario. Any weakness today therefore is a buying opportunity with support at 1229/27 likely to hold the downside. However below 1219 risks a retest of the low this week at 1215/12 for a second buying opportunity today.
Fibonacci resistance at 1247 & short term trend line resistance at 1252 so this area may hold a move higher & we could consolidate yesterday's gains before the next push higher. However be ready to go with a break above 1256 to target 1264/68.
Weekly outlook: We hit our downside target of 1215/14 this week & bottomed almost exactly here at 1211.50. We should now build a recovery in to next week.
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