Reasons to be bearish: (technicals)
-We are coming up on our 3rd touch of down-trending resistance.
- Gold is struggling to get back above 1500 after breaking below the up trending channel and a bearish retest of it.
- Price action looks similar to the last correction outlined in the red box.
- If the correction is now over, it was very quick.
- Stock market recently had a big drop, perhaps it is ready for a rebound. - Otherwise a potential crash then we have more to worry about.
Reasons to be Bullish: (fundamentals)
- Fundamentals: FED announces 'not QE' (i.e. it IS QE)
- Probability of trade deal from upcoming China talks is low (but some sort of agreement will lead to gold to crash).
- Repo market worries.
- Hong Kong.
- Turkey to invade Syria.
I think markets are waiting so see what happens with the trade talks. News or announcements around this may be the decider of bull market or one more correction.
-We are coming up on our 3rd touch of down-trending resistance.
- Gold is struggling to get back above 1500 after breaking below the up trending channel and a bearish retest of it.
- Price action looks similar to the last correction outlined in the red box.
- If the correction is now over, it was very quick.
- Stock market recently had a big drop, perhaps it is ready for a rebound. - Otherwise a potential crash then we have more to worry about.
Reasons to be Bullish: (fundamentals)
- Fundamentals: FED announces 'not QE' (i.e. it IS QE)
- Probability of trade deal from upcoming China talks is low (but some sort of agreement will lead to gold to crash).
- Repo market worries.
- Hong Kong.
- Turkey to invade Syria.
I think markets are waiting so see what happens with the trade talks. News or announcements around this may be the decider of bull market or one more correction.
Note
this could also be seen a a bull flag, but I don't think it is because we are only on the 3rd touch of the downtrend. If it was 4th or 5th then I would be cautiously bullish.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.