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Chart of The Day Gold
Gold Potential Reversal Zone & Probable Price Path
Markets wobbled yesterday after the WSJ reported that Pfizer is planning to halve its 2020 dosage to 50 million. This may have been old news - the company had announced this in mid-November - but WSJ’s report on the matter yesterday shook market confidence. The S&P 500 index closed marginally in the red, falling 0.1% on the day, while 10Y Treasury yields fell about 3bp. Note that Pfizer still expects to ship more than a billion doses in 2021, but ultimately the risk-on rally may have needed a breather yesterday and the somewhat negative vaccine news provided the catalyst for profit-taking. Meanwhile, OPEC+ has agreed on a compromise to gradually hike output in 2021, pushing Brent prices to its highest since March. All eyes will be on the US labour market report today, where a 475k increase in nonfarm payrolls is eyed
From a technical and trading perspective, Gold is in the process of developing an impulsive advance from the end of November low as 1823 potential wave 4 low holds there is a window for a wave 5advance to test offers and stops to 1860/70 from here nascent bulls will be on watch for a three wave corrective pattern to ideally test and hold the 1829 area. Sufficient bids in this area should warrant bullish exposure targeting a larger degree C wave advance targeting a move to test 1890/1900.
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Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!