A corrective cycle in Gold remains in play and the metal has traded lower today. A key support at $3202.0, the May 1 low has been breached. A clear break of this level would signal scope for a deeper retracement, towards $3164.3, 61.8% of the Apr 7 - Apr 22 upleg. Note that the 50-day EMA is at $3164.5 - a key support too. A breach of both points would undermine a short-term bullish theme. Initial resistance is $3277.6, the 20-day EMA.
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A short-term reversal in S&P E-Minis last week highlights the start of a corrective cycle. The trend condition has been oversold following recent weakness and the move higher is allowing this set-up to unwind. Initial resistance to watch is 5524.91, the 20-day EMA. Resistance at the 50-day EMA is at 5737.71. On the downside, key support and the bear trigger has been defined at 4832.00, the Apr 7 low.
SX7E (20th June) 180c, bought for 4.25 in 12k vs 3.84k at 168.00.