GOLD
Let’s start today’s analysis with the gold market. Looking at the daily interval, one can see that the precious metal has launched an upward correction. The recent upward move is supported by the wide double bottom pattern. Should the current sentiment prevail, buyers should watch the resistance area at $1,870 which is marked with the upper limit of 1:1 structure (blue rectangles) and 50% Fibonacci retracement of the downard move started in August 2020. On the other hand, if sellers manage to halt upward move, the nearest support to watch lies at $1,804 and is marked with the local 1:1 structure (orange rectangles).
GOLD D1 interval. Source: xStation5
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Looking at the technical situation on the US tech index - Nasdaq (US100), one can see that the index is trading in a local downward channel. US100 reached all time high in April but the buyers did not manage to maintain momentum and the downward correction started. The nearest resistance to watch lies at 13,420 pts, and is marked with the upper limit of 1:1 structure and previous price reactions. Should sellers manage to maintain their lead, the move towards yesterday's lows is possible.
US100 H4 interval. Source: xStation5
DE30
Last but not least, let's take a look at the German DAX (DE30). Looking at the H4 interval, we can see that the recent upward move stopped in mid-April and the downward correction was launched. However, the downward move looks more like a continuation of a sideways move rather than a bigger sell-off. According to the Overbalance methodology, as long as the price sits above the 14,800 pts support, the main trend remains upward. Should sellers manage to take the price below the aforementioned support, a bigger downward correction may start. In such a scenario the next support to watch lies near the 14,100 pts.
DE30 D1 interval. Source: xStation5
