S&P500, Gold, Bitcoin & Crude Oil in Focus this Week

Bin Lu, one of our most consistent traders in November, has continued to impress, pushing her gains above the 103% mark as of the 23rd of November.

Congratulations Bin.

We dived deeper into Bin Lu’s trading statistics last week when she was sitting on 68%.

Well done to Hong Lai Li, who is sitting 2nd on 79%, with Dong Yuan Zhang 3rd on 53.90%.

Bin Lu continues to focus on the DJ30 index, Hong Kong 50, and the Nasdaq, with a remarkably consistent win rate.

Let’s take a look at the leaderboard as of today.

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November has been one of the trickier months to trade due to the reduced volatility and narrow ranges.

But that doesn’t mean volatility won’t potentially pick up as we head into the last week of trading.

Today we’ll look at where the potential for breakouts could come from and where the short, sharp moves may hit.

S&P500 pulls back from record highs, testing support

The S&P500 index and the Dow Jones have recently pulled back from record highs, using previous resistance as support, as noted in the chart below.

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What is staggering about the S&P500 and the Dow Jones is how much value they have added to the market cap of all stocks around the world.

If this isn’t risk-on, then I don’t know what is.

The analysis from Holger below, highlights the scale at which traders and fund managers globally have embraced this rally and truly got behind it.

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Gold price hitting support with volatility dropping

You get a sense that something is building on the price of Gold.

As traders, we often talk about time and price. Right now, time is building, with the potential for a large price move getting higher every day.

We’ve seen a choppy, hard to trade, narrow range on the precious metal since September.

But right now, it seems as if traders are favouring a risk-on mode for equities, given the potential of a vaccine, relative to the safe-haven buying around Gold and Silver.

Both Gold and Silver have had their shine taken off them, as you can see from the price of Gold below.

The yellow zone on the chart shows the recent lows, creating a critical point for breakout traders to consider if we continue to see weakness in Gold.

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But could it be the case that people are selling down their Gold holdings to purchase Bitcoin?

Since the 7th of August this year, the price of Gold has fallen 9.8%, whereas the price of Bitcoin has risen 58%.

Let’s not forget the CEO who moved $425 million into Bitcoin in September this year, according to an article on Bloomberg.

Jeroen Blokland also noted the meteoric rise of Bitcoin since 2013, up 20,000%.

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Crude Oil stuck in a narrow range

Crude Oil continues to trade in a narrow range, testing both topside resistance and downside support levels.

Momentum has seen the black gold bounce back from the lows at $33.47 on the 2nd of November, which puts the gain at 25.7% since that low point.

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Josh Owens, Content Director at oilprice dot com, has noted that while demand in Europe and the United States continues to disappoint, refiners in Asia are picking up the slack.

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Perhaps that’s not quite enough to overcome the drop in demand due to the C19 pandemic, with global travel almost at a standstill.

But if the momentum continues, we may see the price of WTI test the levels not seen since the 6th of March.

What will you be trading in the last week of November?

Are you a range-bound trader who has been able to take advantage of the recent choppy ranges? Or are you a breakout trader waiting for any of these markets to finally make a run higher or lower?

No matter what style of trader you are, time is running out for the November Stage 6 trading contest, which is your last chance to qualify for the Grand Final. You can view all the 2020 Grand Final qualifiers by clicking here.

We look forward to seeing how you close out November and who takes the top spot.

Are you ready to join the next Stage? Click here to register an account.

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Ashley Jessen // Author of CFDs Made Simple, Head of Marketing at ACY Securities

Ashley Jessen is the author of CFDs Made Simple and Head of Marketing at ACY Securities. He has been in the financial services industry since the year 2000 and worked for some of the leading companies in the CFD, Forex and Online Trading space.