Gold & Silver: Watching & Waiting
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Gold is holding well below the signal resistance regions specified on the charts (the 1808 region on the Option 3 Micro Linear chart and 1824 on the Options 1 and 2 counts). Although higher targets are still achievable, I do not see a high-probability bullish pattern of a larger degree (for now at least), so keep watching and waiting for a reaction to the signal resistance regions mentioned above.
With regard to Silver, I see local overbought signals provided by the nano bounce off the recent low, so there are not any bullish indications detectable at the moment. I prefer waiting and watching the pattern.
The initial wave structure off the low may be interpreted as an impulse (nano level), and over 22.035 (the Friday's low) higher targets seem to be a reasonable expectation. I am basically expecting a corrective bounce until proven wrong -- and next target target might reside in the 23.374 - 24.20 area.
The low being in place scenario is a less likely alternative, at least at this point (marked in red on the Option 1, 2 charts), and to credit that scenario I would like to see initial 5 waves up to 24.5 area.
Overall, the bullish scenario of a larger degree is valid over the 21.46 level. Below this line the Option 3 Micro Linear chart suggests a decline to the 19.67 region.
