S&P 500 And Gold Analysis: March 7, 2018
FxPro Financial Services Ltd | Mar 07, 2018 05:34AM ET
The US index has taken a fall lower with worries over trade tariffs. Today, it is opening with a gap down after the US Chief Economic Advisor to President Trump resigned last night. This raises the risk of a trade war taking place. The price has found support around the 2680.00 area and has a rising trend line adding support at 2671.50. A fall below this trend line suggests that the 2650.00 area could be targeted, with recent lows at 2647.30. A move under this area creates a lower low and can start taking out bullish stops down to 2600.00. Bearish traders are targeting the lows of 2018, around 2529.00 initially, with 2500.00 below.
Resistance can be found at 2700.00, with 2714.18 above, supported by the 4-hour moving averages in a tight band between 2711.00 and 2721.75. The next resistance comes at 2729.00 and 2736.62. Breaks higher above this area would create a higher high, which would be confirmed with a move through 2788.40, with trend line resistance at 2810.00.
Gold
With risk-off sentiment in the markets and a flight to safety taking place, the precious metal has seen a modest recovery from the 1300.00 support area. This has resulted in a bullish move to test resistance at 1340.00, with price pulling back to support at 1331.50. Further support is firming up in the 1327.50 area as the moving averages in the 4-Hour timeframe turn higher and the supporting trend line of the bullish move rises up. Further support is seen at 1320.00 and the 1311.14 level. As mentioned, 1300.00 is a strong area extending down as far as 1290.00.
Resistance comes at the 1333.60 area, which price is currently struggling with. A break above this week’s highs targets the 1344.17 level, followed by the 1350.00 area and red trend line resistance at 1355.70. Above here, resistance is found at 1361.5 and 1365.00.
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