Last week saw the metal taking a breather from its recent bullish momentum with a slightly choppy week producing few trading opportunities. Wednesday, Thursday and Friday saw the market falling towards the both psychological and technical support/resistance level at 1700.
Friday’s daily bar closed as a bullish pin bar suggesting we could see the bulls returning in the coming week. Friday’s price almost reached the important level at 1700 but came just shy. Fridays pin shows a clear and strong rejection of lower support.
As seen in the chart above, the level at 1700 has proven in the past to be both technically and psychologically strong. With Fridays Price closing the day a bullish pin we’ll be looking to long the metal with the anticipation of the bulls returning.
Initially we’ll look to target the next obvious resistance area which comes in at just above 1760. Should the market reach this area we’ll look for price action confirmation for further bullish momentum before exiting the trade or letting it run higher.
