Dollar Strength and Increased Risk Appetite Weigh Heavily on Gold

May 16, 2019 - 6:36pm

 by Gary Wagner

Gary S. Wagner - Executive Producer

______________________________________

 

  Bitcoin Stalls at $8500, the .38% Fibonacci Retracement Level -   By Joseph M. Wagner II

 Bitcoin continues to hold onto the gains made earlier this week and is currently at $7900 with a small draw-down on the day of approximately $325     as of 4:00 PM EDT.  What is noteworthy is the intra-day high which traded within   $55 of current resistance at $8500. This resistance level is based upon the intra-day high achieved on July 24th, 2018 as well as the .38% Fibonacci retracement level. This Fibonacci retracement is based upon a data set going   back to January 2018 when BTC futures traded to approximately $11800 (a level that proved to be resistance on February 20th, when BTC made a double top at this price) down to the all-time lows just above $3000.

Support currently resides at the 50% retracement level at around $7450, below that major support resides at $6424 which is the .618 Fib. level, the pre-gap close last Friday as well as an area of historic price congestion giving this level of support strong validity.

                

P.S. Want to get my Gold Forecast that's returned 1600% since 2010 for free?  Click Here

Members section is now available for free, because 14 days has past since its publication.

Gold Forecast: Proper Action

We are currently flat with no active trades.

On Sunday, May 5th, we sent out a trade alert to enter a long trade in June gold. We entered this position at $1285 with a stop at $1268. Yesterday we sent out a trade alert to modify the stop to $1291.13. That stop was hit today, resulting in a profit of $613.00 per contract.

Gold Market Forecast

Today's sharp decline of $10.80 certainly indicated strong resistance at $1300 per ounce. More so our technical studies suggest that gold could trade to a low of $1280 per ounce before finding support and returning to a bullish demeanor. This support level at $1280 is the .618% Fibonacci retracement of the most recent rally which you started at $1267 and concluded at $1300. Therefore we could be presented with an opportunity to enter the market below our entry point of our last trade at $1285.

Sentiment Indicator:
Gold -> Neutral
Silver -> Bearish
S&P 500 -> Neutral
Bitcoin -> Bearish