August gold closed slightly higher on Monday. The low-range close sets the stage for a steady to lower opening when Tuesday’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 1273.50 would confirm that a low has been posted. If August renews the decline off March’s high, the 75% retracement level of the January-March-rally crossing at 1237.50 is the next downside target. First resistance is the 20-day moving average crossing at 1273.50. Second resistance is the reaction high crossing at 1306.60. First support is the 75% retracement level of the January-March-rally crossing at 1237.50. Second support is the 87% retracement level of the January-March-rally crossing at 1212.80.
July silver posted an inside day with a higher close on Monday. The mid-range close set the stage for a steady opening when Tuesday’s night session begins trading. Stochastics and the RSI are neutral to bullish hinting that a low might be in or is near. Closes above the 20-day moving average crossing at 19.198 are needed to confirm that a low has been posted. If July renews 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 19.198. Second resistance is May’s high crossing at 20.005. First support is the reaction low low crossing at 18.615. Second support is weekly support crossing at 18.008
Source:RSBL