This week’s financial spread betting update is now available and can be read by clicking here.
In early morning trading today the dollar is gaining ground across the board. At the same time commodities are lower as are stocks. This is common when the dollar gains as stocks and commodities are generally inversely correlated with the dollar.
As a general rule this is a bullish time of year, with from here in to year-end typically being bullish, but as we cover in this week’s update seasonality is not enough by itself to place trades. An example of that is Gold, which also on a seasonal basis tends to do well in December but that is not the case so far this year and gold is lower by some $24 this morning at the time of writing and is now back below $1700. Gold is still in a long-term uptrend and is the last of the metals to still be in an uptrend. Silver, which often moves pretty well in tandem with gold is considerably lower this morning as are the other metals.
In this week’s update we touch on the large triangle pattern on gold that has formed over the past few months and note that a breakout from that triangle may lead to a decent move in the direction of the breakout. This morning’s action has given gold a downside breakout, but as mentioned above, the long-term trend is up. The next support area to look out for is $1670. Beyond that we’re looking at $1600 and then $1550.
This week’s financial spread betting update begins with: The past week saw a small continuation of strength for stock indexes but further weakness was seen in the commodity markets and the dollar for the most part was flat. Much of the week has been focused on events in the Eurozone with the Euro summit taking centre stage…….…continue reading by clicking here