Analysis of Gold for October 23,.2020 – Rejection of the support trendline and potential for the rally towards $1.930
Latest data released by Markit – 23 October 2020
- Services PMI 46.2 v 47.0 expected
- Prior 48.0
- Composite PMI 49.4 vs 49.2 expected
- Prior 50.4
The readings here fit with the narrative with what we have seen from the German and French readings – more so the former – earlier in the past 45 minutes.
It reaffirms a two-paced ‘recovery’, where the manufacturing sector is keeping more resilient overall while the services sector momentum continues to fade into Q4.
Analyzing the current trading chart of Gold, I found that there is potential completion of the downside corretion, which is sign for further rise.
I would watch for buying opportunities with the targets at $1,931 and $1,955.
Stochastic just came out from oversold zone and there is the fresh bull cross, which is another sign for the furher rise….
1-Day relative strength performance Finviz
Based on the graph above I found that on the top of the list we got Crude Oil and Lumber today and on the bottom Natural Gas and Lean Hogs.
Resistances: $1,931 and $1,955.
Support levels: $1,894
The material has been provided by InstaForex Company – www.instaforex.com