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"We definitely have some diversifying going on out of stocks and into fear trades, which is gold today."
- Optionsellers.com (based on Bloomberg)
Pair's Outlook
A one-day outlook for gold has a slight bearish bias, even though overall trading is likely to be range bound between 1,104 and 1,086. The bulls are expected to experience some difficulties near 1,110 where we see a formidable resistance being formed by Jan 8-20 downtrend line, monthly R2 and 100-day SMA. A success here will expose the 1,127/32 area (monthly R3; 200-day SMA), which itself may provoke a bounce back in the medium-term. In the meantime, the bears will continue focusing on 55-day SMA at 1,076, which guards Dec-Jan uptrend as the main target line.
Traders' Sentiment
Yesterday we observed another setback among the bulls, being that their portion decreased from 56% to 55% in the SWFX market.
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