Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold Touches 100-Day Moving Average
September 25, 2020 - (Gold Market Wire) - Gold has bounced off the 100-day moving average as the selling abates. The question now becomes, can a rally develop here?
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The easy answer is that its possible, but not something you'd like to take beyond a simple day trade. Once again, the whole world got bullish, and the market simply loves to disappoint people, and also enjoys driving them mad. That's why you don't marry a trade. So a short spec long, as punt, only, could be tried. But this has to be more of a scalp/day trade than anything more important. We've had some fairly dead-cat bouncing lately and fear is in the air right now.
Technically, all of those vaulting gaps in June and July, that took us above $2000, are unwinding. Those gaps, define the horizontal support and there are a lot of them, that have been deposited on the chart during the rally. $1818 and $1745 are significant ones below the market. Above the market $1887 and $1904 stand out. The 23.61% fibonacci retracement had some relevance on Wednesday, so we could find a little support there. But Thursday we traded through the level (see chart), so let's not get overly excited about it. Sometime indicators work, sometimes they don't.
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Let's not dismiss the importance of the Friday close, but temper it against the fact that we will have a monthly/quarterly close next week, which will be of significant importance.