Slight Risk On Sentiment and Profit Taking Dent Gold for Now | The Gold Forecast

Slight Risk On Sentiment and Profit Taking Dent Gold for Now

June 28, 2016 - 5:12pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

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Gold Forecast: Proper Action
Sunday we sent out a special trade alert recommending that our subscribers initiate a long gold position.
We went long gold @ 1332. Today the stop was hit @ 1313, for a loss of $19.00 or 1900 per contract)
Gold Market Forecast

Today we saw gold for the first time in a while begin to retrace and close lower on the day.

For the last couple of days it had been my belief and assumption that what we were witnessing in gold prices was simply a consolidation before moving to higher ground.

However, based upon today's lower pricing it is also quite possible that we have entered a small correction within gold's current rally.

With that in mind on today's video report we will focus on Fibonacci retracement levels that could help us determine where gold prices should find support.

Trending Markets Forecast

There were dynamic upside moves not only in the European equities markets but here in the US. Whether we look at this most recent action as a relief rally, or a change in the basic market sentiment about Brexit, one thing remains clear – today's upside move in the Dow Jones industrial average was impressive.

Yesterday when looking at the technical indicators we pointed out the fact that price action in the Dow Jones industrial average had traded to the 38% retracement and closed above it.

This information was to be tempered by the fact that the Dow Jones industrial average price point had also closed below its 200-day moving average.

The same was noted in the Standard & Poor's 500, which also traded and broke below its 200 day moving average and found support just above its 50% retracement level.

With that in mind, the question on traders' minds is whether this is signaling a potential conclusion to the dramatic selloff witnessed recently or simply a bounce before we see lower pricing. In my opinion the jury is still out. 

Sentiment Indicator: