Saturday, January 5, 2019

Which Way For The Markets As At January 5, 2019?

After a turbulent couple of weeks, investors are wondering what the future holds for them.

The CNN Fear and Greed Index gives an insight as to what people have shown recently.

As the illustration  clearly shows there is a degree of pessimism.

CNN uses several criteria to create this graph, you can review their methods here .

Considering the volatility of recent days traders will be skeptical and probably going to cash or Gold until things settle.

Having a look at the Gold chart we can see there has been a steady climb during this turbulent period.

The last bar appears to be ominous, quite a fluctuation in the price, probably related to the phenomenal movements of various world markets in the last two days of the week.

The next chart shows a Fibonacci pattern that may foretell a pending drop in the Gold price.

These patterns do not always indicate what will happen but they do serve as a warning that there may be a change, only price action is going to reveal the next move.

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