day trade ideas – gold & oil – 16/08/13

Spot Gold beat 1374/77 but has so far failed just below this week’s high at 1384. As stated yesterday this offers a selling opportunity with stops above 1386. A break higher could target 1395. We are now overbought short term & on the daily chart which should continue to limit the topside. Watch for a test of support at 1368 & if we continue lower we could reach 1359/58 & a low for the day expected. However longs need stops below 1355 for a test of the next support at 1352/51. Just be aware that if this does not hold we should test very good support at 1344/42 for a short term buying opportunity. 

WTI Crude bounced off 103.65/50 as predicted & beat 104.50 for a selling opportunity at 105.10/20 with stops above 105.40. We did trade at 105.43 but if stops were not triggered we can look for a move back below 104.95 to 104.70/60 for profit taking on shorts. The outlook is still quite negative so any longs need stops below 104.40 for 104.00/90. Any further weakness should retest this week’s low of 103.60/50. A bounce from here is possible again today but longs need stops below 103.20. Resistance at 105.30/40 could hold the topside again but be ready to go with a break higher to target 105.85/90. We should look overbought short term here so exit longs & try shorts with stops above 106.10.