Markets in Meltdown Following China News
After China reported poor growth and news broke about Evergrande's bankruptcy filing, along with Country Garden's sluggish to negative growth, the stock markets in Western countries took a nosedive. Check out the US and ASX charts we've provided to see the impact of this news.
Over on the ASX, the ASX200 crashed through its 200-day moving average (200MDA), leaving Australian shares on the hunt for any signs of support or resistance. The psychological resistance at 7000 points might be the next level to watch.
Gold and Silver didn't fare any better, sliding due to the Chinese news. Both metals have dipped below their 200MDA. In fact, many commodities saw their prices drop over the past week as they anticipated weaker demand from China in the coming period.
Things are looking jittery in the US trading sessions too, with 2.2 trillion dollars' worth of stock options set to expire later today. While this is a routine event, it might add more fuel to the already blazing fire as stocks struggle to stabilize.
On a more worrisome note, with global markets reeling from China-related news, inflation is back in the spotlight. There's talk of more aggressive rate increases in the short term, with some analysts suggesting around 8% to curb inflation.
Given all the negative and concerning developments worldwide, could Gold and Silver be taking a massive breath before making a strong upward move? Many folks see the current prices as a buying opportunity, especially considering that both metals are now below their 200MDA. Check out the technical analysis results for gold that we've included for you below.
ASX200
US500
Gold daily chart, with 200MDA
Silver daily chart, with 200
Gold Futures Technical Analysis
Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis a SELL signal.
Technical indicators - Monthly Projections
RSI(14) | Neutral |
STOCH(9,6) | Buy |
STOCHRSI(14) | Buy |
MACD(12,26) | Buy |
ADX(14) | Sell |
Williams %R | Buy |
CCI(14) | Buy |
ATR(14) | Less Volatility |
Highs/Lows(14) | Neutral |
Ultimate Oscillator | Sell |
ROC | Buy |
Bull/Bear Power(13) | Buy |
Summary for Monthly Forecast: Strong Buy
Disclaimer
This news and any links provided are for general information only and should not be taken as constituting professional advice from Jaggards. Jaggards is not a financial adviser. We recommend you seek independent financial advice before making any financial decisions based on the information contained in this article.