->What has happened?
-Technology stocks, which are popular this year, have been up for a second week, but other key stock indices have remained resilient, with a weak dollar indicating that investors have confidence in the next rally. All of this suddenly collapsed yesterday, when European indices fell and the US dollar rose sharply, causing commodity prices to fall from gold to oil.
===
->What are the reasons?
the following reasons were key:
-Technology stocks are extremely expensive - many ratios are approaching highs from the dot-com bubble
-The offer of new Tesla shares indicated that these technology shares may be overvalued
-European coronavirus statistics are deteriorating - new restrictions are being introduced
-New reports have shown that large banks around the world have contributed to money laundering
-The USD was exceptionally oversold by speculators (according to CFTC reports), with negative news closing some of these positions, triggering the sale of gold and silver
===
->What's next?
-This has been the sharpest correction since at least June and in some markets since March. At this point, this could only be seen as a cooling off of over-optimism, but a more pronounced decline cannot be ruled out.
===
->Analysis:
Gold trades close to the $ 1,900 ounce level. Recently, gold has left the triangular formation. We see further support near the level from August 12. However, the size of the March correction suggests that the price could fall to as much as $ 1,700 an ounce in the event of panic. However, such a decline could only come with a significant strengthening of the USD.
->Gold:
-The recent declines are primarily the strengthening of the US dollar
-The positions of large gold traders are not reduced as significantly as in February and March. ETFs are still buying funds
-Recent history shows that during sales, gold may fall as the USD strengthens. In the long run, however, there is still a chance of continued profits
-From a technical point of view, the market is settling from the breakthrough of the triangular formation.However, we expect more significant declines in gold only if the markets enter a "panic" mode.
-History shows that corrections within the bull market are not exceptional.
-The development of the positions of large traders and the purchases of ETF funds show that the market is not yet as frightened as in March. On the other hand, it will depend very much on the movements of the US dollar.
->If you have any questions or concerns, feel free to comment in the comments section. If you like my idea you can support it with like.
-This is not financial advice.
Trade safe!
-Technology stocks, which are popular this year, have been up for a second week, but other key stock indices have remained resilient, with a weak dollar indicating that investors have confidence in the next rally. All of this suddenly collapsed yesterday, when European indices fell and the US dollar rose sharply, causing commodity prices to fall from gold to oil.
===
->What are the reasons?
the following reasons were key:
-Technology stocks are extremely expensive - many ratios are approaching highs from the dot-com bubble
-The offer of new Tesla shares indicated that these technology shares may be overvalued
-European coronavirus statistics are deteriorating - new restrictions are being introduced
-New reports have shown that large banks around the world have contributed to money laundering
-The USD was exceptionally oversold by speculators (according to CFTC reports), with negative news closing some of these positions, triggering the sale of gold and silver
===
->What's next?
-This has been the sharpest correction since at least June and in some markets since March. At this point, this could only be seen as a cooling off of over-optimism, but a more pronounced decline cannot be ruled out.
===
->Analysis:
- The price of gold broke the main 75-day moving average, which supported the rising trend. The point of support is not so clear now. The most likely point is the August 12 intraday low of $ 1,865, just above the 150-day moving average.
Gold trades close to the $ 1,900 ounce level. Recently, gold has left the triangular formation. We see further support near the level from August 12. However, the size of the March correction suggests that the price could fall to as much as $ 1,700 an ounce in the event of panic. However, such a decline could only come with a significant strengthening of the USD.
->Gold:
-The recent declines are primarily the strengthening of the US dollar
-The positions of large gold traders are not reduced as significantly as in February and March. ETFs are still buying funds
-Recent history shows that during sales, gold may fall as the USD strengthens. In the long run, however, there is still a chance of continued profits
-From a technical point of view, the market is settling from the breakthrough of the triangular formation.However, we expect more significant declines in gold only if the markets enter a "panic" mode.
-History shows that corrections within the bull market are not exceptional.
-The development of the positions of large traders and the purchases of ETF funds show that the market is not yet as frightened as in March. On the other hand, it will depend very much on the movements of the US dollar.
->If you have any questions or concerns, feel free to comment in the comments section. If you like my idea you can support it with like.
-This is not financial advice.
Trade safe!
Comment:
Today first key level hitted.