Bitcoin, S&P 500, Gold, Technical Analysis, Retail Trader Placement – Talking Points
- Bitcoin may resume rally as short bets accumulate
- The S&P 500 can also follow a similar route higher
- Gold prices are weakening, but recent uptrend holding
In this week’s session on IG Client Sentiment (IGCS), I discussed the outlook for Bitcoin, the S&P 500 and gold. IGCS is typically a cross indicator. To dive deeper into where these assets can go, including a deeper technical discussion and fundamentals, check out the recording of the session above.
Bitcoin Sentiment Preview – Bullish
The IGCS Meter suggests that about 77% of retail traders are long net Bitcoin. Exposure to the disadvantage has increased by 5.49% and 15.08% on a daily and weekly basis respectively. Recent changes in sentiment warn that the current price trend may soon reverse higher despite traders remaining net.long.
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Bitcoin Technical Analysis
Bitcoin’s astounding journey higher over the past few months is facing the 78.6% Fibonacci retracement extension of 23813 on the daily chart below. Further upside down may be achieved with the negative diversion of RSI, an ominous sign of fading momentum that could threaten to turn lower towards support.
BTC / USD Daily Chart
Bitcoin Chart Created in Trading View
Piment P&P 500 Preview – Bullish
The IGCS Meter suggests that for 39% of retail traders are in the long net of the S&P 500. Top-side exposure has decreased by 2.16% and 11.66% over day and weekly respectively. T.it is a combination of current feelings and recent changes is a stronger proposition bullish contrarian trading bias.
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S&P 500 Technical Analysis
S&P 500 futures have recently dipped lower after remaining short of the 38.2% Fibonacci extension at 3737. This also follows a negative RSI diversion, warning that further losses may be imminent. A break under the 20-day Mobile Average (SMA) could open the door to experience the same 50 days.
S&P 500 Futures Daily Chart
S&P 500 Chart Created in Trading View
Gold Sentiment Preview – Bearish
The IGCS Meter suggests that for 82% of retail investors are long net gold. Down-side exposure has decreased by 7.17% and 23.10% on a daily and weekly basis respectively. T.it is a combination of current feelings and recent changes offers a stronger bearish inclination of contrarian trading.
Gold Technical Analysis
Following recent losses, gold prices remain in short-term rise from late November, supported by a growing trend. XAU / USD struggled to hold a push above the 50-day SMA after pulling out the same 20 days. Falling under the latter can open the door to stretching losses.
XAU / USD Daily Chart
Trade Chart Created Gold Chart
* IG Client Sentiment Charts and Positioning Data Used from December 23rd Report
— Written by Daniel Dubrovsky, Cash Analyst for DailyFX.com
To contact Daniel, please use the comments section below or @ddubrovskyFX on Twitter