June gold closed higher due to short covering on Thursday. The high-range close sets the stage for a steady to higher opening when Friday’s night session begins trading. Stochastics and the RSI are oversold but are turning neutral to bullish hinting that a low might be in or is near. Closes above the 20-day moving average crossing at 1276.70 would confirm that a low has been posted. If June extends the decline off March’s high, the 75% retracement level of the January-March-rally crossing at 1237.80 is the next downside target. First resistance is the 20-day moving average crossing at 1276.70. Second resistance is the reaction high crossing at 1306.60. First support is the 75% retracement level of the January-March-rally crossing at 1237.80. Second support is the 87% retracement level of the January-March-rally crossing at 1213.00.
July silver closed higher due to short covering on Thursday. The high-range close set the stage for a steady to higher opening when Friday’s night session begins trading. Stochastics and the RSI are turning neutral to bullish hinting that a low might be in or is near. Closes above the 20-day moving average crossing at 19.205 are needed to confirm that a low has been posted. If July extends the decline off May’s high, weekly support crossing at 18.008 is the next downside target. First resistance is the 20-day moving average crossing at 19.205. Second resistance is May’s high crossing at 20.005. First support is last Friday’s low crossing at 18.615. Second support is weekly support crossing at 18.008.
Source: RSBL