Gold continues to show weakness, as futures (-3.00) point to a lower open for the yellow metal. Levels below have been noted as possible inflection points should RSI continue to drop.
Gold (EOD) End of Day continuous contract reflects possible inflection zones at the declining 50ma and December pivot lows. Until we see volume, this is our target zone. We’ll need to see buyers step up at these levels to gain our interest. As a result, NUGT and miners are thought to be bearish.
Sector Rotation suggests we could see a flat market, with three trading days remaining in January.
Transports, energy and financials continue to show favor, as RSI climbs to higher ground. Technology stocks (XLK) have had quite a run, as price action pierced the upper Bollinger bands Wednesday. The sector took a breather on Thursday, into big tech earnings from Google, Microsoft and Intel.
Considering all of the dojis populating our charts, another range session is possible. Therefore, we will be trading light today, looking for a possible fade from a flat open.
Gold bounced a bit since I started writing this post (-8.50), trading higher now at (-3.00).
We will be LIVE again this morning, for the Opening Bell. Join us at https://ticker.tv/cousin_vinny
Happy Trading – CV
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