Good morning Traders!
The last couple of weeks saw buying returning into many metal markets, today I’d like to
take a look a Gold and Lead, both are trading near a strong resistance level.
Gold Finding Resistance at 1800
Gold has found resistance under the strong level of around 1800, this was also the major
swing Lower High on the way down, a break above this level could see the market testing
the next level at around 1870.
For a potential opportunity I am looking for either a bullish consolidation underneath the
level on the lower timeframes, with Equal Highs and Higher Lows, and then a break of this
level higher, or, a break and a retrace to test this level from above.
The monthly chart on the other hand is showing a cautious signs, where the market was
in a strong sell, and the move higher to the 1800 area, could simply be a pullback in the
context of the much higher timeframe strong selloff, and as this is the first time back at
this level, there could be a lengthier fight between the buyers and the sellers at this level.
Lead – Testing 2250 Again
Lead is once again coming to test its strong resistance level at 2250, on the weekly chart
we can see that the market has attempted this level several times, but each time got
rejected. In last attempt, sellers at that level could not push the price to a Lower Low
before the buyers stepped in again, printing a Higher Low.
Both Daily and Weekly charts are in a confirmed uptrend, and with price showing more
bullish momentum, I am looking for a potential break of this level, and a potential move
toward the next level around the 2350.