GOLD - WEEKLY UPDATE 1 NOV
Hello traders, gold is experiencing the same situation as the SPX index in the related idea in the link below. As we can see, the correlation between Gold and US Equities has been high during the last month, showing a coefficient above 60%. This relation is even higher on a weekly timeframe, where the coefficient.
Despite the graphical patterns being different, the conclusions are similar. Gold is below the 100MA and seems to be about to break out a bearish triangle pattern. Should this happen, the first target would be 1829, coinciding with the lower part of the Fibonacci retracement, and the second one would be 1788.
A positive breakout of the triangle instead would lead to the 1928 to be tested and a continuation of the uptrend after a retest. However, this is a less likely scenario at the moment, and would be anticipated by a close above the 100MA in case.
Wating for a daily close outside the triangle, the trading range to exploit is 1860-1900.
Despite the graphical patterns being different, the conclusions are similar. Gold is below the 100MA and seems to be about to break out a bearish triangle pattern. Should this happen, the first target would be 1829, coinciding with the lower part of the Fibonacci retracement, and the second one would be 1788.
A positive breakout of the triangle instead would lead to the 1928 to be tested and a continuation of the uptrend after a retest. However, this is a less likely scenario at the moment, and would be anticipated by a close above the 100MA in case.
Wating for a daily close outside the triangle, the trading range to exploit is 1860-1900.
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