Technical analysis

Technical analysis

06 December 2018
  • 20:46

    Gold ticks lower despite risk-off sentiment

    The bullion failed to rise on Thursday, despite massive losses on the stock market and remained stuck in a narrow range, trading near 1,236 USD, still below the critical resistance of 1,242 USD.

    The major selling zone is still at around 1,242 USD, where October highs are located and if the price jumps above this level, we could see another leg higher toward the 200-day moving average, which is currently at 1,255 USD. Jumping above this level might confirm the bullish breakout for the next weeks.

    The support is currently at 1,230 USD and if taken out, further losses toward the broken trend line at 1,225 USD could happen, with the next bullish bids probably at the 100-day average at 1,210 USD. Gold needs to stay above this trend line to remain with a short-term bullish outlook.

    However, the inability to move higher despite the recent sell-off elsewhere is pointing to a possible bearish reversal, if bulls don’t push the price above 1,242 USD quickly.

    Gold ticks lower despite risk-off sentiment 06.12.2018

    Disclaimer:

    Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.

  • 20:46

    DAX drops to new Cycle Lows

    The German DAX index was dragged lower by negative sentiment and crashed 2.5% on Thursday, with the price dropping to new cycle lows, which may be considered as a confirmation of the long-term bearish trend and trading at around 10,900 EUR ahead of the US session.

    The current decline is very steep, but according to the RSI indicator, the index still hasn’t reached oversold conditions. However, there is a bullish divergence between the RSI indicator and the price and if sentiment improves, we could see some higher prices over the next days.

    On the downside, the next major support could be located near 10,800 EUR, where the highs of summer 2016 are located. If this level is taken out as well, the index could decline toward 10,500 EUR pretty quickly.

    Bears will be defending previous lows of 11,050 EUR and if this resistance doesn’t hold, further rise toward the downtrend line slightly above 11,200 EUR could occur. 

    US bonds and JPY crosses remain down on the day, which supports the bearish bias for the rest of day.

    DAX drops to new Cycle Lows 06.12.2018

    Disclaimer:

    Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.

Market focus

  • German producer prices fell more than forecast in October
  • ECB's Lane rules out eurozone recession, says recovery in next year or two
  • Excessive risk-taking and falling bank profitability cloud euro zone’s growth - ECB
  • Bundesbank: Domestic economy will probably continue to provide momentum
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