Monday, February 13, 2017 –
Gold 4 hour chart shows price falling below the 50 moving average in the first hours of the trading week. Stochastic made a bearish cross and is currently reaching extreme oversold levels.
The daily chart for gold is also looking bearish. Stochastic made a bearish cross and RSI also touched overbought levels a few days ago. We are short term bearish for gold right now. Short term target is a support from May 2016 which is 1204.07. Second target if price below the first level is 1182.63.
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February 10, 2017
The S&P 500 just made new all time highs this Friday. Last Thursday was consolidation day for the S&P 500 and the price found some strong support at the 200 moving average as shown in the 4 hour chart. That range between the 50 and 200 moving average was getting tighter and caused a breakout to the upside.
There was not much movement during the early parts of the session but price was nicely supported by the 50 moving average. During the US open the price finally broke out of the consolidation range and proceeded to make new all-time highs. Price is currently at overbought levels as shown by the RSI and Stochastic. We are expecting a big pullback soon for the S&P 500.
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Friday, the 4 hour chart shows that gold price just bounced off the 50 moving average and stochastic is showing a bullish cross right now. Last Thursday’s session saw Gold traders taking their profits after a 5 day climb. This bounce could be a start of another run towards making new highs for this month for gold.
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CAD/JPY – The Canadian Dollar just broke out and touched the 50 moving average on the daily chart. This happened around the release of Canada Labour Force’s report. The report shows that employment rose by 48,000 during the month of January 2017, while the unemployment rate has decreased by only 0.1%.
First major resistance for the pair is around the 87.515 level. Stochastic is also showing a bullish cross. Profit taking is to be expected soon as traders don’t want to hold through the US and Japanese meeting.
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