Dow Jones, Gold, Oil Tech Outlook & More
The US stock market continues to run with lots of strength, the Dow and S&P don’t have any great technicals to lean on, but the Nasdaq, as discussed this morning, is quickly arriving at an interesting cross-road. At this time fresh longs don’t hold real appealing risk/reward; however, shorts hold even less in the absence of bearish price action.
Gold is holding its own as price action coils up in the context of a bullish trend. It might not be too much longer before it tries to make another run out of a triangle formation. If it does it could finally get gold into open space and string together a run to 1700+ in the not too distant future. If weakness comes in, look for the 1536/May trend-line to act as support.
Gold Daily Chart (coiling up nicely in uptrend)
Crude Oil is still a mess in the absence of buyers. It might remain this way for a bit longer, at this time there seems to be muted interest after the plunge on the coronavirus. Copper which also plunged at the same time is trying to mount a comeback, and with stocks at highs, it certainly is worth the consideration that further selling might be around the bend. For more, check out the Monday piece on crude oil.
To see all the charts we looked at, check out the video above…
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.