GOLD
(XAUUSD)
Dominant
Bias: Bearish
Gold experienced
a massive sell-off last week, which rendered the recent bullish bias completely
invalid in the market. The market has been very volatile since then, with
short-lived victories that are alternated between the bull and the bear. In
this kind of market, a wide stop is recommended; plus the most probable
direction is southward. Only a movement above the supply level at 1324.00 could
make the probability of the bearish direction useless. Meanwhile, the price may
reach the demand level at 1293.00. After all, that demand level was tested
during the massive sell-off that happened last week.
SILVER
(XAGUSD)
Dominant Bias: Bearish
There is a
Bearish Confirmation Pattern in this market, which was brought about as a
result of the strong weakness that happened last week. It is known that Gold
and Silver are highly correlated (positive correlation), and any discrepancy in
the direction would create a profitable trading opportunity, especially the one
that causes transitory negative correlation. Right now, it is most likely that
this commodity would continue its weakness, but the volatility in the market
must be taken into consideration. Sellers may want to take some profit at the
support level of 20.3300, for this may be an area where the price would bounce
upwards significantly.
Source: www.tallinex.com
Learn from the Generals of the
Markets: Market Generals
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