Gold is pushed down by the strong Greenback, TSLA grows

The new trading week commenced with the US dollar retreating against all major currencies. While stock markets, crude oil, and gold experienced some instability without any notable developments. This week, traders will closely monitor Wednesday's release of the US core inflation rate, anticipated to drop to 4.3%, compared to the previous month's 4.7%.

Chinese data has shown a degree of resilience, with improvements in credit demand and a reduction in deflationary pressures. This overall trend is encouraging for the global economy.

In broader market sentiment, there is a growing belief that the Federal Reserve might extend the duration before considering an interest rate hike, even though it's likely the rate will remain unchanged.

Approximately half of traders are of the opinion that the rates will hold steady until March 2024. Looking ahead to May next year, there’s a rising perception of the likelihood of falling interest rates.

In this report, we focus on two potential trading suggestions: TSLA and Gold.

TSLA

This week’s interesting US stock market story is Tesla. After Morgan Stanley raised the company’s rating to “overweight”, increasing the price target towards $400 (USD), it produced a massive breakout from a widening chart formation. That provoked profit taking, which pushed the price down. 

Now the potential target of the downside move is $255-259, a gap level from the recent breakout. Price may find support within this area as shown in the chart.

XAUUSD

Gold is experiencing a downturn below a 50-day moving average, staying under pressure against a steady US dollar. Technically, the next strong support might happen at the $1,905 area, which is a pullback low from 25 August.

This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.

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Author:

Stanislav Bernukhov

Stanislav Bernukhov is a professional and trained trading trainer with 15 years of experience in this field. He specializes in multiple trading methods, including price action, Market auction theory, and unconventional graphical analysis.