Stock and commodity markets are moving bullish on Friday after the first day of talks between the United States and China.
Stock indices scale pending the second day of negotiations. In Asia Nikkei 225 rises 0.45% to 21,955 pts, Hang Seng rises 2.25% to 26,286 pts. In Europe, the German DAX 30 index scales 1.25%, reaching 12,314.5 pts.
Commodities, meanwhile, also move bullish on Friday. Gold regains ground advancing 0.57% and moves again over $ 1,500 per ounce, while silver climbs 1.27% to $ 17,725 a troy ounce.
The bullish sentiment of the markets comes after the first day of talks between negotiators between the United States and China. President Trump called this first day, "very, very good."
An officer close to the White House said the talks have been proving "probably better than expected." Also, a U.S. Chamber of Commerce said that both countries had increased the possibility of a currency agreement this week.
Technical overview
Gold price continues developing a corrective structure. The yellow metal in its weekly chart moves in a potential wave (4) in progress. In the near-term, we expect a triangular correction or a complex corrective sequence.
Long-term, we foresee a potential correction that could extend its decline to the area between1,445 and $1,435 per ounce.
The Gold in its 8-hour chart shows a first corrective sequence labeled as ((a)), ((b)), and ((c)) in red degree. The first bearish leg started on September 04, when the price found sellers at $1,557.03 per ounce.
Once the price action found a short-term bottom at $1,455.50 per ounce, the golden metal began a bounce. The current move should be developed in three waves. Until now, the upper degree Elliott wave structure could be a flat pattern.
In consequence, a short position could be active if Gold breaks down and closes below the last swing ((b)) in red from the wave B labeled in black at $1,487.80.
The potential profit target is between $1,448 and $1,437 per ounce. The invalidation level could be above the end of wave B labeled in black degree.
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