Gold prices rose as the yellow metal took advantage of its safe-haven status. Market analyst David Becker states that concerns about the South African variant of Covid-19 have hit stocks hard worldwide, putting high-risk assets under threat. According to the analyst, it was as if the markets pressed the panic button. Market analyst Christopher Lewis, on the other hand, states that the gold markets were crushed throughout the week to slice the 50-week EMA. we too Cryptocoin. com we have compiled technical analysis and evaluations of David Becker and Christopher Lewis for our readers.
Gold technical analysis: Short-term momentum turns positive
Analyst David Becker states that gold prices are moving and are seen near an upsloping trendline approaching $1,790, holding just above the support. This level coincides with the 50-day moving average at 1.790 and resistance is seen near the 10-day moving average at 1.825. The analyst reminds that the medium-term momentum has turned negative as the MACD (moving average convergence divergence index) creates a cross-sell signal. Stating that this scenario occurs when the MACD line (12-day moving average minus the 26-day moving average) falls below the MACD signal line (the 9-day moving average of the MACD line), the analyst makes the following assessment:
Short-term momentum has turned positive as the fast stochastic cross creates a buy signal. Prices are oversold as the fast stochastic prints data of 18 below the oversold trigger level of 20.
According to the analyst, fear trading has dominated market activity globally. The USA had a short week due to the Thanksgiving Holiday. The analyst says that overall, riskier assets benefit through November, but fears that the Covid variant could spread are overwhelming market participants.
“If the market does not recover, we will continue to decline towards the $1,700 level”
Market analyst Christopher Lewis states that gold markets squashed throughout the week to slice the 50-week EMA and then hit the trend line he marked on the chart. At this point, the market is closing near the bottom of the candlestick, which is a very bearish outlook, so it’s probably just a matter of time before we see some sort of attempt to save this market. However, the analyst thinks that what is ultimately owned is a scenario where the market must recover, or it will continue to decline towards the $1,700 level.
The analyst states that the size of the candlestick indicates more downward momentum, but caution should be exercised as this is a sudden reaction to the novel coronavirus variant and there is almost no liquidity in the markets. Therefore, according to the analyst, your Monday session will likely be the most important one next week. The analyst considers this session to have a scenario that gives some “prediction” on whether the market is taking the threat of the new coronavirus. Continuing, the analyst makes the following assessment:
Yes, Thursday and Friday were terrible trading sessions. However, at the same time, none of the major New York banks were involved. So, I think we have a scenario that shows a big move is coming, and we should have an idea of where it will be in the next few days. Watch out for the US dollar, the negative correlation persists.
