Gold’s Worst Week in 3 Years Sees Bears Firmly Back In Control
Matt Simpson November 10, 2019 7:48 PM
Bulls failed to conquer key resistance at 1519.70 and prices have since rolled over, putting the 1411-1417 zone in focus.
Bulls failed to conquer key resistance at 1519.70 and prices have since rolled over. Given the series of doji’s, hammers and pinbars around this level it was apparent the level was a key focal point. Therefore, we warned that any weak break of this level increased the odds that price action remains in a complex correction. Yet it didn’t even break before bearish momentum returned. Furthermore, the 20-day eMA has crossed below the 50-day eMA and both of them are now pointing lower.
Having suffered its worst week in three years, bears are clearly in charge and momentum suggests we’re now in an impulsive wave lower. As the bias is for an eventual break to new highs, the bearish bias is over the near-term, and will later seek evidence the correction from the 1557.10 high is nearing completion.
- The bearish channel can be used to aid with profit objectives.
- If a double zigzag is presented, the 1411 - 1417 zone could be a viable target as this is around a 100% projection from the initial ABZ correction (wave equality) and also near the 200-day eMA.
- If a deeper correction unfolds, we can also use the bullish trendline from the August low. That said, the 1381.91 -1400 zone should also be considered as potential support along the way.
Gold Perks Up But It’s Not Out Of The Woods | XAU, GDX, KL, AEM, NEM
ASX200: The Long And Short Of It | XJO, NAN, NCM, BOQ, GNC
Weekly COT Report: Trade Optimism Supports CAD and AUD
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.