› Market review, December 4 - December 8, 2017

Market review, December 4 - December 8, 2017

GOLD

The past week turned out to be quite difficult for gold, mostly due to an evident downward trend.
Weak gold attempts for growth were cut short on Wednesday, after the release of positive US economic statistics.
GDP data was better than expected as well, and the economic growth accelerated.
Gold value was not affected even by the intercontinental ballistic missile from North Korea.
Apparently, market participants are already accustomed to such attacks and perceive them as mere insinuations.
Before the close of the market on Friday, the momentum of the downward movement slowed down and the last hours of trading were conducted mostly in a "range."
A positive push of gold’s value was brought by the stop of the development of tax reform in the United States.
Bulls offsetted the loss of yellow metal on Thursday in a matter of few minutes and sent its price to an important resistance level $1’284.
Accordingly, we recommend to consider the level of $1’270 as a starting point to look for entry points in the market to open short positions, and the level of $1’288 for trading in the opposite direction.


Market review, December 4 - December 8, 2017


BITCOIN

Bitcoin was the absolute record holder of the last week of November.
This crypto currency did not leave the headlines of news publications and Internet portals.
Rumors, hype and speculation brought the bitcoin rate to new levels, and then, in a matter of hours, lowered its value by 21%.
Bitcoin not only confirmed our forecast regarding its movement, but also exceeded the most bold expectations of investors.
Traditional market analysis tools cannot provide enough information about the upcoming changes in the cost of bitcoin.
Many analysts are quite optimistic about the future of this asset, foreseeing its conquest of new heights.
Others, on the contrary, believe that the rush around bitcoin will soon subside and that it is greatly overrated.
Yet, as we see, the interest doesn’t seem to go down any time soon, and a decline to the level of $9’000 caused a new wave of demand and, as a result, a new upswing.
Using the technical approach for the analysis of bitcoin, one can make an assumption concerning a small drop in the value of this cryptocurrency to the level of $9’808, and even $9’295.
On the other hand, in case of a rupture of the current resistance level, we recommend to look for entry points for long positions from the price of $10’940.


Market review, December 4 - December 8, 2017


OIL

The attention of traders preferring commodity assets last week was focused on the meeting of the OPEC cartel countries, which took place on November 30, 2017 in Vienna, Austria.
Interest was heated by rumors about a possible extension of the freezing of black gold production quotas by the countries participating in the cartel, and several countries outside the cartel.
This event first cooled the interest of market participants, but soon afterwards, on the release of new data, the price pushed away from an important level of $57.3, went up and at the close of the market on Friday evening traded near the level of $58.5 per barrel.
At the aforementioned meeting, it was decided to keep the production level unchanged until the end of 2018.
As a consequence and as one can see on the charts - the price went further up, providing once again a confirmation of an already established trend.
Accordingly, after a small retracement, there is a high probability of the resumption of the upward movement.


Market review, December 4 - December 8, 2017


GBP

The British pound last week reached its peak once again with the decision of Britain to abandon the Eurozone.
This level was reached before on November the 1st, after which a retracement followed.
On Friday, December the 1st, the Pound reached its peak again, and now we can expect a long-term downward movement until the end of next week.
In addition, a number of important news are expected this week, which may set the trend for the upcoming weeks.


Market review, December 4 - December 8, 2017


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