‘Participants still look to play on the long side. However, we may see profit-taking push the metal towards the 100-day moving average at $1,220.25.’ – Sam Laughlin, MKS PAMP Group (based on Reuters)
On Tuesday morning the yellow metal’s price declined, and the decline in the price can be explained by using not only technical but also fundamental analysis. From a fundamental perspective, profit taking occurred due to large jump, which occurred on Monday. Meanwhile, from a technical perspective it can be seen that the bullion’s price jumped out of the borders set by the Bollinger bands and encountered the weekly R1. Due to that reason the commodity price is declining, and it is most likely to retreat to the 1,220 levels, where the next notable support cluster is located at.
SWFX traders are neutral on the metal, as 50% of trader open positions are long. In the meantime, 60% of trader set up pending commands are to buy the metal.