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Currency Market: Gold and FTSE 100

Gold

The Gold price is not only  overbought  but sits at a critical juncture. From the open at 1783.20, next above is located 1793.72 and 1805.10. Targets above 1805.10 and excellent short entries are found at 1818.48, 1864.53, 1874.58 and 1912.09.

Below 1.1793.72 targets 1768.86, 1745.66, 1730.20 and 1696.42.

Gold's overall range is found from 1793.72 to 1674.31 or 119 points then 1594.72. The 5 year average is positioned at 1542.31.

Recall the August 2021 Gold post as the 5 year average was then 1510.03. The 5 year average rose 32 points in 4 months. The April 2021 post, Gold ranged from  1846.05 to 1693.27 or 152 pips as opposed to 199 points today.

Overbought begins at the 5 to 10 year monthly averages. From the 5 to 10 year averages, 1500's and 1400's are many and strong supports.

A viable trade for many many points is non existent. Day trade ranges roam from 9 to 12 and 18 points on a good day. No changes over many months of day trades. Gold is a dead traded instrument.

FTSE 100

From the open at 7291,  FTSE monthly averages are non uniform and located all over the map.

The 5 year average is located at 7018.20 then many and massive supports exist from 6800's to 6900's.

The next short targets are found at 7162.79 and 7123.19.

Short entries are best found at 7311.88, 7350.79, 7364.77 and 7416.47 then range tops at 7524.09 and 7563.02.

Author

Brian Twomey

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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