Text Book Head and Shoulders on Gold - appears negated, for now
Just looking at the charts, and some thoughts. Tomorrow is the last FED meeting of 2020, gold traders will probably be adjusting last minute over the next twenty or so hours. That Head and Shoulders can come right back into play if traders and institutions don't like what they read or hear. Should gold go back below 1800, it might be time to consider the gold trade dead for the next month and change. On the other hand, a sustained and well-defended move back above 1880 would put Gold back on the trajectory to a target of 2000 or above. Goldman Sachs updated their target for 2021 as 2300 which seems reasonable if buyers continue to buy. Chinese Lunar New Year approaches on Friday, February 12, 2021 (year of the Ox apparently), which might signal additional buy pressure as February approaches, and traders might start front running that trade soonish. Also the holiday factor is kicking in. If no big surprises from the FED, we have only the news for clues as to what 2021 brings for PMs and for the markets as a whole.
Eyeballing the RSI on my chart seems to show bullish divergence on the 30 minute chart, and apparent on the daily chart as well.
Staying neutral, mildly bullish with the retaking of 1850 today. Not adding, just watching.
A brief from Marketwatch on what to expect going into the meeting:
marketwatch.com/story/4-things-to-watch-when-fed-meets-wednesday-11607979577
Tomorrow will probably be the last trading day of any significance unless Stimulus Talks Drama manifests once more. My thoughts, they have probably agreed on a strategy to keep things calm as we end out the year, even if there are major disagreements. We can all use the rest if that is the case.
Eyeballing the RSI on my chart seems to show bullish divergence on the 30 minute chart, and apparent on the daily chart as well.
Staying neutral, mildly bullish with the retaking of 1850 today. Not adding, just watching.
A brief from Marketwatch on what to expect going into the meeting:
marketwatch.com/story/4-things-to-watch-when-fed-meets-wednesday-11607979577
Tomorrow will probably be the last trading day of any significance unless Stimulus Talks Drama manifests once more. My thoughts, they have probably agreed on a strategy to keep things calm as we end out the year, even if there are major disagreements. We can all use the rest if that is the case.
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