GOLD
Let’s start today’s analysis with the gold market. Looking at the D1 interval, one can see that an upward correction was launched after price bounced off the $1,700 support and the double bottom pattern was painted. Price broke above the neckline of the formation and reached the 100-period moving average, which may act as short term resistance for now. Should the price break above the aforementioned moving average, a move towards the upper limit of the downward channel looks possible. One should also pay attention to the $1,870 area which is marked with the upper limit of 1:1 structure and 50% Fibonacci retracement of the downard move started in August 2020. On the other hand, if sellers manage to halt upward movement there and break back below the $1760 support, gold may resume the downward move.
GOLD D1 interval. Source: xStation5
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Secondly, let’s take a look at the US tech index - Nasdaq-100 (US100). Looking at the H4 interval, we can see that the upward move was stopped and the downward correction started earlier this week. The price returned below the recent local high at 13,900 pts, and the continuation of the correction looks to be a possible scenario. Should bearish sentiment prevail, the nearest key support to watch can be found in the vicinity of 13,300 pts, where the lower limit of 1:1 structure and the previous price reactions are located.
US100 H4 interval. Source: xStation5
DE30
Last but not least, let's take a look at the German DAX (DE30), which has also experienced downward correction in recent days. However, looking at the H4 interval, we can see that buyers halted declines at the 100-period moving average. The price is also struggling to break back above the lower limit of 1:1 structure at 15,185 pts. Should buyers manage to halt declines there, another upward swing impulse may be about to start. On the other hand, should sellers manage to take the price below the aforementioned moving average, the bigger downward correction may start. In such a scenario the next support to watch lies near the 15,000 pts handle, and the next one is located at 14,770 pts.
D30 H4 interval. Source: xStation5
