Gold Price News 2010

Day Trading Economic News Analysis: April 19, 2010

S&P 500 Pivots

On Friday Goldman Sachs was charged by the SEC with civil fraud regarding dealings of the subprime related products. Expect European and Asia markets to be lower on Monday after the aftermath of selling on the US exchanges. The S&P 500 fell to 1192 ending the day near last Wednesday’s previous low.

Monday’s primary pivot point is 1196.36. Expect minimum market activity until the S&P 500 breaks out between the 1189 and 1199 range. The market will go lower if it breaks support around the 1189 area. The market will go higher if it breaks the 1199 resistance because it is also the convergence of the 144 and 500 Fibonacci moving averages on the 5 minute chart.

If the market stays above Monday’s primary pivot then of 1196 then the market will have a higher chance of staying positive. If the market is trading below 1196 then market sentiment is cautious and heading towards the 1189 support area.

Summary of Pivot Levels:

1214: S&P 500 52 week high

1199: Convergence of 144 and 200 Fibonacci moving averages

1196: Monday’s primary pivot point

1194: Monday, April 12, 2010 previous high

1189: Tuesday, April 13, 2010 previous low

Commodities Analysis: Gold and Crude

Gold is currently down $23.00 to $1137 as gold imports are up in India ahead of the one million weddings planned between April and May. The gold prices may have been settled in and may trend lower. As we have mentioned on our April 14th analysis, gold is expected to lower as it has been rising since March 24th.

A trading strategy for gold includes buying calls on SPDR Gold Trust (ETF: GLD). On the daily chart gold broke through the trading range above 1220 set in early December 2009.

Crude oil fell $2.59 to $83.24. The dollar gained strength as traders and investors exited the market after the SEC announcement against Goldman Sachs. As the dollar continues to trend higher against the euro expect prices of crude oil to fall. We have mentioned on April 14th that the 60 day chart crude oil looks to be tipping over as traders are expected to take profits.

Forex Analysis: Dollar Vs Euro

The dollar gained as investors and traders rushed to safety from stocks as Goldman Sachs faces SEC actions. GE is investing 340 million Euros ($460 million) to expand European wind operations. Companies buying into foreign currencies for purchases and investing increase the demand towards that country’s currency. However the Euro gains are being cut short as Greece struggles with issues on their debt.

Monday Economic Numbers

March Leading Indicators are expected however are unlikely to move markets as developments in Greece debt and Goldman Sachs takes center stage. Last month February Leading Indicators increased to only 0.1% compared to January’s 0.3%. The 3-month moving average decreased to 0.53% growth compared to last month’s 0.86%.

Leading indicators is a composite of ten economic indicators including production workweek, money supply, inventory changes, stock prices, unemployment insurance claims to generate an overview of the economic activity. Regardless of strength within the manufacturing sector, some of these other indicators are showing weakness in the overall economy.

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About the Author

Shamim Ziyaaudhin is one of the editors of TraderMongers.com and TraderMongers Blogger a one stop trading news feed source for worldwide traders and investors. Their philosophy is to establish the standard for providing market news feed that is comprehensive, accurate, and concise. Providing technical and fundamental trading setups, economic numbers, and calendar events throughout the trading day. Shamim has a Masters in Business Administration from Fairleigh Dickinson University and holds a degree in Psychology from Rutgers University. Click here to subscribe to Tradermongers E- News

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