Is Gold Still a Buy?/Tech Stocks Moving US Markets

Thoughts on Gold

Gold prices reached over $1,900 today as futures shot up in earlier this morning. This metal seems to gain more and more momentum as news between US and China becomes worse. Uncertain markets and uncertain currencies give gold more of an appeal to it. Although gold has been overbought on the 14-Day RSI for several days, it seems like there is no end to its demand.

An issue that always comes back into mind is that confusing times do not always bring out panic selling but panic buying as well. Investors don't want to miss out on the price swings so they continue to buy up positions before prices break previous highs at $1,918. That price is what we're looking at as potential resistance for the metal. We definitely think there is some downside potential ahead, but we don't think it will last long. A long position now would seem like a price chase but it could work out as we think gold has a little more room to run. Citi Group, on the other hand, feels that XAU can go all the way to $2,000 before major demand for the metal dies down. RSI currently at 82 which indicates that price is really high. A price of $1,918 in the next few days could set the RSI closer to 90 which means that investors might dump what they have before a pullback. Overall, we are bullish on gold but temporarily waiting for some give in prices so we don't go price chasing.

https://www.marketwatch.com/investing/future/gold

Futures still look promising although current price is well above July contracts. Pushing highs does not seem out of reach, but will wait to see what futures look like after once that level is hit. If they're trading higher than before, then a break in long term resistance will be a very bullish sign for investors.

Tech stocks

All US indices fell yesterday as big tech dropped after earnings. The surge of buying pressure from the passed months finally stopped when investors dumped shares to take profit.

Trade Ideas on NAS100

Prices initially fell after the index tested highs again and formed more resistance at $10,788. The last 4H candle actually came down to the 200H moving average before bouncing back up today. Some mild resistance in the way at $10,527, but stronger resistance lies above at $10,788.

Tech Stocks

Intel plummeted to April lows at $49.52 after earnings and news of their delay in chip production. RSI reading that price is oversold and could be something to consider looking in to.

Tesla falls over 4% today after the big sell off. Recent news states that Tesla is suing the company Rivian for possibly stealing some of Tesla's intellectual property. TSLA's run looks like it's taking a break for now.


Thanks for reading! If you are interested in joining our trading community, we have chat rooms, trade alerts from our top traders, and educational content. You can join using the link below, and get a discount on your membership.

Featured Photo: https://specials-images.forbesimg.com/imageserve/5da63b70db40260006202a39/960x0.jpg?fit=scale

Disclaimer:

Please note that this email is my personal opinion only. I am not a licensed financial advisor, and any information shared or discussed is not to be construed as investment advice. Trading and investing involves a degree of risk, and is not suitable to all investors. Please consult with your financial advisor before making any sort of investment decisions.

Looking for a Broker?

Check out our favorite brokers & reviews! Find brokers available in your country, or our top rated brokers to consider.
Find a Broker
More Articles
January 17, 2021
Weekly Forex Forecast for GBPUSD, CADJPY, GBPAUD, XAUUSD (17-22 January 2021)

Weekly Forex Forecast for GBPUSD, CADJPY, GBPAUD, XAUUSD (17-22 January 2021) Hey everyone! Welcome to this week's forex forecast for the week ending January 22nd, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at GBPUSD, CADJPY, GBPAUD & XAUUSD. GBPUSD Looking at GU on the Daily timeframe, price has been channelling […]

Read More
January 10, 2021
Weekly Forex Forecast for GBPUSD, EURCHF, USDJPY, XAUUSD (10-15 January 2021)

Weekly Forex Forecast for GBPUSD, EURCHF, USDJPY, XAUUSD (10-15 January 2021) Hey everyone! Welcome to this week's forex forecast for the week ending January 15th, 2021. It's so great to be back, I hope everyone's had a fantastic holiday, and I hope everyone's motivated to work 10x harder than last year. I'm wishing everyone nothing […]

Read More
December 21, 2020
Top Trading Ideas for 2021

Throughout the year, we've seen many changes to the way we trade, how we manage risk and how we interpret the markets. The new insights we have gained over the months usually come after years of trading and adapting to ever-changing environments. We've done all that in a matter of months! Up until the New […]

Read More

Related Articles

August 28, 2020
Economic stimulus and the Role of Central Banks

Politics preventing new financial stimulus The economic recovery in the major global economic powers depends on several important factors. One of the most vital part, the spread of the virus and the government's answers to it. With a decrease in daily cases of COVID-19 to 50,000 in the U.S.A. Yet U.S. A remains the most […]

Read More
August 26, 2020
How to Spot a Scammer

Our team has unfortunately received many reports of scammers using our content and pretending to be us.¬†While we will continue to report these accounts to the authorities as we receive reports, we may not always catch them in time. Below our a list of things to look out for before making a purchase to any […]

Read More
August 22, 2020
Legends of Investing - The Story of Warren Buffet

Warren Buffett is one of the most idolised, investors in the world. At the time of writing , his company, Berkshire Hathaway, has a market cap of $495 billion and Buffett himself has a net worth of $79 billion. His approach to value investing, combined with his influence over the companies he invests in , […]

Read More

A1 Trading Company

A1 Trading Company is a financial services and media business founded in Atlanta, USA.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram