The price is located at the area wherein the upper channel territory converges with the Monthly Pivot. Therefore we expect the bears to have the upper hand this week, specially taking into account the downward slope of our bigger channel.
The index is fluctuating within an ascending channel. It seems that we will witness a rally to the 81 area wherein the Monthly Pivot is located. (Shown by a big circle on the chart)
We have 2 support zones this week:
- The middle band on which the price is resting right now
- The lower area of the bigger channel which has been shown by a circle by us
A negative hidden divergence (HD-) is forming in MACD. The more this pair fluctuates around the Monthly Pivot which converges nicely with the upper area of our bigger channel, the more energy the bear will get to push the price lower.
Gold is flirting with the lower areas of the channel and bands. From the cyclical analysis perspective, it is a little soon to call a bottom in gold, but if the bulls can manage to hold the bears at bay in the first days of the week, we can be hopeful of a rally towards the upper area of the channel starting from the middle week.
Price is located at the area wherein the Monthly Pivot converges with the upper area of our channel and band. It seems that we will have a 150 pips pullback this week. The triggers should be sought in the lower time frames.