Chinese markets were closed overnight due to the ongoing Lunar New Year holidays, but Japanese stocks managed to rise to a fresh 33 month high after the US signaled an understanding of BOJ deflation fighting efforts. European stocks softened initially, but then returned to unchanged levels after a cost cutting announcement from Barclays moved market sentiment. Lingering Asian holidays and another thin US economic report slate today could leave the markets focused on Fed speeches and the US State of the Union address tonight. Lots of G20 talk with highlights having Draghi say that Europe recovery 2nd of the year, and discussions on Yen movement.
Gold remains in a downtrend and today’s low so far is 1639.50 basis April gold. The key band of support is the 1620-1633 area. That encompasses a GANN number, the previous Jan 4th low and the gold downtrend line on the chart. Odds favor that is the area we should reach if we break below 1638. Resistance is going to be the Red downtrend line at 1657 and up to 1661. Additional resistance is the green 200 hour moving average at 1668 and red downtrend line crossing at that point also. Thus 1668-1672 is the current 2nd tier resistance. With this consolidation over the last 8 hours odds favor either 1652-1654 or 1658 -1660 as resistance for the remainder of today’s session in New York.
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Do your own due diligence.
No one knows tomorrow's price or circumstance.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
