Analysis of Gold for November 06,.2020 - Bearish divergence on the Gold with potential for downside rotation towards $1.936

UK October Halifax house prices +0.3% vs +0.5% m/m expected Latest data released by Halifax - 6 November 2020 Prior +1.6% House prices +7.5% vs +8.2% y/y expected Prior +7.3% Average house price £250,457

Slight delay in the release by the source. The annual change marks the highest growth in house prices since June 2016, as the UK housing market continues to stay more resilient after the bounce back from lockdown measures in Q2. Halifax notes that:

"This level of price inflation is underpinned by unusually high levels of demand, with latest industry figures showing home-buyer mortgage approvals at their highest level since 2007, as transaction levels continue to be supercharged by pent-up demand as a result of the spring/summer lockdown, as well as the Chancellor's waiver on stamp duty for properties up to £500,000.

Further Development

Analyzing the current trading chart of Gold, I found that the buyers got exhausted today and the downside rotation would be probably to correct strong upside movement from recent few days.

Stochastic is showing bearish divergence on the 4H time-frame, which is another sign of weakness.

Watch for selling opportunities with the downside targets at $1,936 and $1,917

Resistance is set at $1,953

1-Day relative strength performance Finviz

Based on the graph above I found that on the top of the list we got Coffee and Silver today and on the bottom Ethanol and Crude Oil.

Gold is slightly positive on the list but with decreasing in the upside momentum.

Key Levels:

Resistance: $1,953

Support levels: $1,936 and $1,917