Gold,Silver continued with their Sell off which started on Friday after breaking 2 year support of 1526$ and 26$ respectively. Commodities are feeling the pressure from the latest round of disappointing data from China. China earlier reported that its quarterly domestic product rose 7.7%, while its industrial production grew 8.9% – both figures missed forecasts.
Crude futures are taking a beating , with crude for May delivery down 2.47% at $89, nearing its 52-week low of $81. As per Fibo Channel 87$ comes as next important support which should be used traders to book partial profit,Unable to hold the same can see next leg of down move till 80$.
Silver crashed 10%, as per Weekly Analysis achieved all the targets on downside with huge volumes made a panic low of 22.95 before bouncing back.As per Fibo Regression channel 22.62 is very important support for Silver, So traders carrying shorts can book out profit in range of 22.62-22.82,but if this spot doesn’t hold there isn’t really much support until $19.50.
Gold Drops Most In 30 Years.Today is the largest one day decline from the previous day’s close @ -9.6%. Volume is already north of 530,000 – another record with another 6 hours of electronic trade to go. There have been three rounds of liquidations. The first round was the Asian liquidation that ended at 9 am. The second round was the European liquidation that ended at 5 am. They are spaced 8 hours apart. At this rate, the US liquidation phase won’t be complete until the London closing at 1230 pm CST, at least this is what that behavioral model suggests. You are witnessing an historical selling climax folks.
Gold is down another 7% Monday to $133.80.Gold as per Weekly Analysis achieved all the targets on downside with huge volumes made a panic low of 1355 before bouncing back.As per Fibo Regression channel 1355 is very important support for Gold,It might try to pause here, but the velocity of this move now opens the door potentially to $1290 which is next Fibo regression channel support.So traders carrying shorts can book out partial profit in range of 1355-1360 and if 1290 comes book out maximum profit.
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