Analysis of Gold for January 19,.2021 – Potential reversion to the mean towards $1.863
- Expectations 61.8 vs 59.4 expected
- Prior 55.0
- Eurozone expectations 58.3
- Prior 54.4
The continued jump in the expectations component remains the standout in the report as vaccine optimism and hopes of a stronger economic reopening later in the year is fueling more positive sentiment to start the new year.
This reflects the more optimistic investor sentiment as well but we’ll see how well this will hold up in light of restrictions set to be prolonged further to April in all likelihood.
Analyzing the current trading chart of Gold, I found that there is strong rejection of the swing low at the price of $1,820, which is good sign for the further upside movement.
My advice is to watch for buying opportunities with the upside targets at $1,863 and $1,922.
Additionally, Stochastic oscillator is in the oversold zone, which is another indication for the potential rally…
1-Day relative strength performance Finviz
Based on the graph above I found that on the top of the list we got Lean Hogs and Wheat today and on the bottom VIX and Lumber.
Resistance: $1,863 and $1,922.
Support level: $1,820
The material has been provided by InstaForex Company – www.instaforex.com