Gold has been trading in a sideways mode since Aug 2019 and it been 4 months of sideways price action. However, Friday rally in Gold brings a potential trend reversal with short term trend & Trading sentiment turning positive.
Geopolitical tensions escalated following the drone attack on two Saudi Aramco installations Abqaiq and Khurais. Yemen’s Iran-allied Houthi rebels have claimed responsibility warning Saudi Arabia that their targets “will keep expanding”.
In the midst of ongoing trade war tensions gold, this week had captured the psychological mark 1500 USD and trading around the overhead resistance zone 1520-1525 levels. Gold rallied and broken the 2014 year high from bottoming at $1,045 in December of 2015
In May, the National Oceanic and Atmospheric Administration predicted a near-normal 2019 hurricane season, which runs from June 1 to November 30. But, the season got off to an early start with the short-lived sub-tropical storm Andrea on May 20.
1050-1350 for the last 5 years and currently trading very close to the upper band. Monthly ADX is maintaining below 20 since the year 2017 that shows the dullness in the trend at the broader level.
Thats Gold monthly timeframe showing consolidation in the band of 1050-1350 for the last 5 years. Monthly ADX is maintaining below 20 since the year 2017 that shows the dullness in the trend at the broader level.
If financial markets were styles of music, equities, especially the most stable Big Board stocks, are like great classical compositions: They’re made up of consistent, steady tempos you could listen to all day with the occasional booming or crashing note.
WTIC Crude is showing signs of strong momentum on Friday it is up by 4% during the U.S session. Since 22nd Nov 2018 crude is trading in a consolidation band of 50-54 range with couple of times testing the psychological reference zone 50 levels. And now price is trading in the upper end of the consolidation with stronger momentum which indicates potential higher prices in the shorter term.
WTIC Crude is in a clear downtrend since the start of Oct 2018. November month alone it lost more than -21%. Currently crude is trading above the psyhogical support zone 50 which is expected to provide better support zone and short term buying is expected to happen in this zone as long as 50 is protected on the downside.
WTIC Crude in the International market had lost more than 24% in the last two months due to too many negative factors. WTIC crude oil dips below $55 to its lowest level in a year, extending a record losing streak. Sentiment went really extreme negative when US President Donald Trump tweeted “Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!”
MCX Natural Gas November futures soared to 19% after the US weather forecasts called for an increasingly cold winter in December which raises concerns that fuel supplies may not be adequate to meet seasonal demand. Natural gas is soaring, during the month of Nov 2018 alone Natural Gas futures up by a whopping 43%.
International Gold is in consolidation mode since 16th of July 2018. Currently trading in a very tight band largely trading within a $10 range over the past week, with the price respecting the $1206 and $1216 levels. Broader range compression ranges from 1205 – 1230 levels in the last one month. The compression in the gold is getting so long on the 4 hourly charts which mostly ends up in a larger price action move.