Gold refrains from confirming triangle pattern
"The strength in stocks and the dollar is obviously a barrier to gold's move higher. Gold is losing its safe-haven bid."
- High Ridge Futures (based on Wall Street Journal)
Pair's Outlook
Our short-term views with respect to the bullion are broadly unchanged. Since Thursday the metal has been oscillating around 1,100. We are therefore remaining bearish on a daily basis, as downward pressure should be created by 100-day SMA and monthly R2 at 1,104/07. By violating this resistance gold is going to confirm the triangle pattern, the event which will change our outlook significantly to the upside. Main support is, however, offered by 20-day SMA/monthly R1/weekly S1 at 1,088/83. Inside such a dense technical cluster around the spot a continuation of the sideways trend is more likely.
Traders' Sentiment
Advantage of long traders has been unchanged since last Thursday, as they continue holding about 55% of all open transactions in the SWFX market.
- High Ridge Futures (based on Wall Street Journal)
Pair's Outlook
Our short-term views with respect to the bullion are broadly unchanged. Since Thursday the metal has been oscillating around 1,100. We are therefore remaining bearish on a daily basis, as downward pressure should be created by 100-day SMA and monthly R2 at 1,104/07. By violating this resistance gold is going to confirm the triangle pattern, the event which will change our outlook significantly to the upside. Main support is, however, offered by 20-day SMA/monthly R1/weekly S1 at 1,088/83. Inside such a dense technical cluster around the spot a continuation of the sideways trend is more likely.
Traders' Sentiment
Advantage of long traders has been unchanged since last Thursday, as they continue holding about 55% of all open transactions in the SWFX market.