In our previous analysis, we warned traders that markets can very rapidly lose interest in coronavirus story. Maybe someone could have doubts on Monday because the bullish movement was mild but yesterday’s rise should leave no room for speculation. Buyers made a serious statement: 2019-nCoV is not going to stop our bullish party.
S&P 500 bounces from the horizontal support established in January, creating a double bottom formation that went north. Additionally, the price broke the upper line of the bearish correction. Technical analysis is pretty clear on this: brace yourself, new long-term highs are coming.
DAX was no different. Here we do have a V shape reversal combined with the bounce from the horizontal support and the 23,6% Fibonacci. We can also find a false breakout pattern below the mid-term up trendline. So many positive factors in one place.
Risk ON mode has to naturally affect Gold. The price of gold made a double top formation and broke the mid-term up trendline. XAU/USD is not giving up so easily though. It should not be a surprise as we know that bullion was recently going up along with the stocks. In the long-term, the situation in Gold is still extremely positive.