Analysis of Gold for October 23,.2020 – Rejection of the support trendline and potential for the rally towards $1.930

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Analysis of Gold for October 23,.2020 - Rejection of the support trendline and potential for the rally towards .930

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

Prior 53.7

  • 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.

Analysis of Gold for October 23,.2020 - Rejection of the support trendline and potential for the rally towards .930

Further Development

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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

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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.

Key Levels:

Resistances: $1,931 and $1,955.

Support levels: $1,894

The material has been provided by InstaForex Company – www.instaforex.com

Source : https://www.mt5.com/forex_analysis/quickview/192669/