Gold post market synopsis for 5/21/20
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On a macro basis: I cautioned on 8/16/18 the break back above $1,179.7-$1,183.7 warned of renewed strength. We have seen $605.1 of this. We held an exhaustion area within this at $1,275.6-$1,269.0 with a $1,274.6 low and have rallied $504.2. We held another exhaustion area within this at $1,416.0-$1,413.7 with a $1412.1 low and rallied $375.7. The break above $1,347.0 projects this upward $80 minimum, $320 (+) maximum. We have attained $441.3 of this so far. On 4/2 we left a bullish reversal below that warned of continued strength. We have seen $167.6 so far. These are ON HOLD.
On a shorter-term basis: The break above the $1,705.8 (-2.3 tics per/hour) line projects this upward $28 minimum. We attained $70 before rolling over. This is ON HOLD. I said in yesterday’s Post Market Synopsis that on the day this warns of profit taking if we can’t take out $1,757.6 to maintain upside momentum--we failed to take this out and traded $36.8 lower. The trade below $1,742.0 by $3.8, warned of a run toward $1,727.5 (-)—we saw $22.9, taking out $1,742. The decent trade below $1,730.4 (+2 tics per/hour) projects this downward $59 minimum, $175 maximum based off an ‘ok formed’ formation; but if we break back above decently, look for decent short covering to come in, likely back toward $1,755 (+)—this will come in at 17319 (+2 tics per/hour starting at 6:00pm). Decent trade below $1,717.1 (+1 tic per/hour starting at 6:00pm) will project this downward $68 minimum, $95 maximum; but if we break below here decently and back above decently, look for decent short covering to come in. Decent trade below $1,701.2 (+1 tic per/hour starting at 6:00pm) will project this downward $80 minimum, $95 maximum; but if we break below here decently and back above decently, get long.