movement Gold Price action is followed closely in stocks, with the escalation of yellow metal to a new 4-month high as S & P 500 has soared to record levels yesterday. Prices subsequently followed S & P 500 lower, climbing a summit in 1339 during the US session to a low of 1332.5 during the Asian session this morning. This close correlation with US equities and essentially changing risks is surprising that the market should have already moved away from speculative game stimulus, as such Or basically, we should see being inversely correlated to stocks instead of what we see now. As such, it is difficult to deny that there is an important part of the speculative influences / technique on gold direction.
Time Table
If true, then the likelihood of a further sell-off in gold short -term is possible that the price should move lower to bottom Channel. However, some form of confirmation will be received (eg a bearish rejection of reason as an attempt to price back above 1335-1336 turned resistance flexible support) the potential for prices to rebound remains that the Stochastic curve already started pushing higher and threatening to cross the signal line to give us a stoch trough. Even in the case where a trough is avoided, the downside potential for gold may be limited in the short term because the readings are close to the oversold zone, which increases the challenge for the price to break below Bottom Channel which is now over 1330 key resistance turned support.
Daily chart
confirmation becomes even more important when we know that the trend is up on the table long -term. As such, it is likely that all of the short term downtrend is only "corrective" in nature and it is quite likely that downside targets can not be completed before the next bullish wave start.
on the technical merits of single daily chart, the rally yesterday is yet another confirmation of the Top channel break that highlights the strength of bulls and increases the sentence for a move towards 1360. However , as WTI crude and S & P 500, gold current recovery remains fragile because there was no significant bearish decline since the start of the rally, and downside risks continue to accumulate as we see nothing fundamental that can sustain the current price gain. That said, the fact remains that the bullish momentum is strong and there is no sign of such a dynamic slowdown. As such, it will certainly be against the trend for short traders at this time for any doubts we may have about the current uptrend right now
Links :.
WTI Crude - Mild Weakness Seen As the price trades below 103.0 Once Again
S & P 500 to 1.850 Intact resistance
EUR / USD - Steady After strong German Ifo Business Climate
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