GOLD
Despite a panic sell-off which can be observed on the stock market, gold price is erasing recent upward move. On one hand, it may be an opportunity to join the upward trend but on the other hand, gold may extend slide, should equity indices rebound. Technically speaking, as long as the price is above the $1610 handle, bulls seem to be in market’s favour. The support is marked with a high from 8th January and lower limit of local 1:1 structure. Breaking below could trigger to bigger downward correction with $1550 handle being the first potential target.
GOLD D1 interval. Source: xStation5
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This week’s sell-off on the US stock market exceeds 10%. Such a large sale may be an opportunity to buy the dip, but considering the growing threat from the coronavirus, further declines cannot be ruled out. Looking at the chart on a higher timeframe shows that there were larger downward movements in the past. The ongoing plunge is very similar to the one observed at the end of 2018. It seems that 2770 could be the first important support to watch. However, the downward momentum is strong therefore the index could plunge to the next target - 2490 points.
US500 W1 interval. Source: xStation5
BITCOIN
After a good start to the year, the crypto market started to fall. Bitcoin traded above $10000 level only for a while. The coin reached YTD highs on 13th of February before moving lower. Downward move accelerated after a break below $9500 handle. The ongoing downward move is supported by the earlier breakout from the upward channel. The next potential target for buyers can be found at the $8200 level, where the 61.8% Fibonacci retracement is located. On the other hand, the closest resistance lies at $9100.
Bitcoin H4 interval. Source: xStation5
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