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Metals supported as stocks look weak

Commentaries & Views

The stock market looks primed for further losses. The below daily chart shows that stochastic RSI is dipping into the oversold condition. Should momentum engrain to the downside, the open gap below the 50-day moving average comes into play. Note that the first open gap we had mentioned as a "flashing downside short target" last week, has now filled.

Conversely, gold bulls are stepping in and the price seems to be firming up above Monday morning’s as we then suggested was probable after the crash through $1750. The Stochastic RSI is starting to perk back up on the daily time frame; gold bulls want to see that momentum blast through the yellow highlighted area (on the indicator) as price gets back above the $1750 level.

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