Day of the falling Gold

By 12/08/2020News
Morning Stock News

Gold  1879,72
(-1,64%)

EURUSD   1,1718
(-0,19%)

DJIA  27634,50
(+0,10%)

OIL.WTI  41,69
(+0,24%)

DAX   12829,53
(+0,01%)

What the bears have been waiting for so long has finally happened. Correction in the gold market. The last time such a significant decline was 5 months ago. Since then, the yellow metal has only been growing. And 3 days ago it was $400 above the maximum values of March.


Gold

gold

The absurdity of the situation is that 95% of bears did not wait for this correction and were closed by stops with huge losses. According to the market law, this is the moment when the correction occurred. As we noted earlier, the latest movements in the gold market were not initiated by new buyers. It was the sellers of yellow metal, who closed their shorts in stops. It is quite logical that when the shorts closed almost all their positions, there was no one else to buy gold and it fell sharply.
Naturally, it was just a temporary break on the way to new highs. A large number of trading strategies gives signals to enter exactly after such corrections. And this is the first signal for the last 5 months.
Particularly impatient speculators will enter the position at the opening of the next day candle. Other players will first wait for confirmation that the fall of gold has stopped. This could be a green daylight candle. The entrance at the opening of the next daily candlestick and the stop under the green candlestick minimum. And the size of Take Profit in this case is not limited. Such constructions on the price chart are so loved by medium-term investors. Unfortunately, they do not occur as often as they would like.


Bitcoin

The first cryptocurrency rushed down following gold. It was falling over 4%. Is there any potential for a bigger fall? Yes, there is. In theory, the BTC can easily test the 11.000$ mark. However, the movement below 10.000$ is already a very big doubt.
Why? Look at one of our mailings last week. We told you what new fundamental factors have appeared in the market. The main one is the arrival of large institutional investors who buy Bitcoin through companies officially approved by the regulators. And these investors, bought by BTC, will not sell at any price. And if the price drops, they will buy even more.


What’s waiting for us today?

04.00 Decision of the Reserve Bank of New Zealand at interest rate
08.00 UK GDP for 2nd quarter
11.00 EU Industrial Production for June
14.30 US Consumer Price Index July


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